US Crude Oil Bounces Off the 50 SMA
Crude Oil has bounced higher off the 50 SMA after a retrace lower this morning
Crude Oil has made quite a reversal in the last several week. Oil started declining in February as coronavirus was spreading in Europe, then US WTI crude fell below $20 in March and in April crude Oil dived below $0/barrel, reaching as low as -$37.50.
But, the decline ended towards the middle of last month and since then the pressure has totally been on the upside. US WTI crude climbed above $38 earlier today as Russia, Saudi Arabia and the rest of OPEC+ are planning to extend the production quotas for another month.
But, after that we saw a reversal and a quick decline, taking US WTI crude more than $2 lower. But, the decline stopped right at the 50 SMA (yellow) on the H1 chart. The price formed a doji candlestick above it which is a bullish reversing signal after the pullback and crude Oil bounced off that moving average.
That was another sign that buyers are in control since they are jumping in at the smaller MAs. Although, now they are facing the 20 SMA (grey) on the H1 chart. So, retraces lower are turning out to be good opportunities to buy Oil and we will wait for another pullback in order to go long.
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