Crude Oil has been bullish since the big reversal at -$37 for US WTI crude. The uptrend has been quite straightforward, as Oil traders realized that the world wasn’t going to end because of coronavirus lock-downs. Moving averages turned into support, keeping the upside momentum going for Oil.
The economic rebound after the re-opening has improved the sentiment in financial markets, sending risk assets higher, while the USD has turned weaker in the last month, on the other hand. US WTI crude made a break of the $40 level earlier this month, but it pulled back below it soon. So the break of the $40 level wasn’t confirmed.
We got the confirmation this week though, as US Oil moved to $41.70. But today, the sentiment has turned sour again, as coronvirus cases increase in the US, or so we are told,because from the official narrative of the WHO, which is not very trustworthy either, we still don’t know what the covid-19 is.
So, crude Oil has dived lower today, with US WTI crude breaking below the $40 level again and falling more than $4. But, the 100 SMA (green) held well in the first attempt on the H4 chart. Now we are seeing a bonce off this moving average, so we will see if it will be broken. If it hold s and a bullish reversing pattern appears, then we might go long from here. If it breaks, we will stay on the sidelines for the time being.