Crude Oil Jumps $5 Off Moving Averages

US crude Oil has bounced higher, after retracing down to MAs on the daily chart

The bullish trend is back on now

Crude Oil has been bullish since it came back from the abyss by the middle of April. Since then, US WTI crude Oil has been gaining around $80, climbing above $40 in early June. The world didn’t end on coronavirus so the sentiment for crude Oil turned positive again.

Besides that, the economic rebound after the reopening has also helped improve the sentiment in financial markets. As a result, Oil has been climbing higher, increasing above moving averages which have now turned into solid support for US crude Oil.

The 20 SMA has been providing support for crude Oil since mid June, pushing the lows higher, thus keeping the uptrend going. Although, the uptrend has lost pace since June. On Thursday last week, we saw a deeper pullback, with Oil breaking below the 20 SMA (grey) on the daily chart, but the 50 SMA (yellow) held as support and Oil has bounced around $5 higher now. So, Oil is bullish and we will try to pick the pullback at moving averages again, if Oil pulls back down there again.

ABOUT THE AUTHOR See More
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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers