Crude Oil Retraces Lower, But the Trend Remains Bullish
Crude Oil made quite a bullish reversal by the middle of April after it had been crashing lower during the previous two months, with US WTI falling to -$37 at some point. But, the price made a swift reversal back then and since then crude Oil hasn’t looked back.
The world is coming out of the pandemic and starting to reopen, which is helping the global economy recuperate somewhat. That has increased the demand for energy prices, hence the bullish trend of crude Oil during the last two months.
Although, in the last two days, crude Oil has retraced lower , after comments from Saudi Arabia that it won’t extend voluntary cuts in production. Oil has broken below the 20 SMA (grey), which provided support last week. But, the 50 SMA (yellow) held well as support and US WI Crude is bouncing higher from that moving average. So, the trend continues to be bullish for this pair, but buyers will have to push above the 20 SMA so the trend can resume again.
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