Crude Oil Faces Two Indicators as it Climbs Higher - Forex News by FX Market Leaders
The climb might be over for crude Oil

Crude Oil Faces Two Indicators as it Climbs Higher

Posted Thursday, August 29, 2019 by
Skerdian Meta • 1 min read

Crude Oil has been on a bearish trend since April, although a base has been put in place for US WTI crude at $50, which is a strong support level. Last week was pretty bearish for Crude Oil, but this week the price has reversed and we saw WTI Oil climb from $53 on Monday after forming a doji candlestick, which is a reversing signal, to $56.70s yesterday.

But, the climb ended right at the descending trend line which connects recent highs. That’s a good sign for sellers. Besides that, the 50 SMA (yellow) was also hanging around there on the daily time-frame chart, so it added extra strength to the trend line as resistance.

The improvement in the sentiment in financial markets helped Oil after some softer tones from Donald Trump on China in the last few days. But, the trade war continues and the global economy keeps weakening, so the softer comments won’t help Oil for too long.

Yesterday’s candlestick closed as an upside-down hammer which is a reversing signal, so we might go short on Oil soon. Although, I would like to see another try to the upside. If that fails, then that would be the final signal to go short.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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