Shorting the Pullback in WTI Crude, as the 50 SMA Catches Up - Forex News by FX Leaders
The pullback is complete for NZD/USD on the H4 chart

Shorting the Pullback in WTI Crude, as the 50 SMA Catches Up

Posted Thursday, April 2, 2020 by
Skerdian Meta • 1 min read

Crude Oil has turned massively bearish in the last two months, after Russia declined the offer from OPEC to cut production by 1.5 million barrels/day. Saudi Arabia opened a war on Russian Oil companies, which does against the US shale producers as well and US WTI crude has crashed lower, losing more than $45 since early January.

The trend has been really strong, since the smaller moving averages, such as the 20 SMA (grey) have been providing resistance and pushing the price lower on the H4 chart. The pullbacks higher have been quite weak, which also shows the strength of the trend.

So the pressure is totally to the downside, and on Tuesday US WTI crude slipped below the big round level at $20. But, we have seen a pullback in the last few sessions, after Trump said that Iran or its proxies are planning attacks on US bases in Iraq. But, the 50 SMA (yellow) has just caught up  and it is already providing resistance on this time-frame. So, we decided to go short below the 50 SMA, after it seems to be rejecting the pullback. Now, let’s wait for the bearish trend to resume.

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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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