Crude Oil Tightening the Range Between MAs, Before the Breakout - Forex News by FX Leaders
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Crude Oil Tightening the Range Between MAs, Before the Breakout

Posted Monday, September 28, 2020 by
Skerdian Meta • 1 min read

WTI Crude Oil surged nearly $ 80 from the middle of April until the middle of June, but then the pace slowed, although the bullish momentum continued. That lasted until September 1, when we saw a bearish reversal during the first week of September, from $ 43.50 to $ 36.

But that level, which used to be a support and resistance area, provided support again earlier this month, and we saw the price bouncing off that level. US Crude Oil climbed above $ 40 again, but the 50 SMA (yellow) stopped buyers short.

The price formed a small doji candlestick below the 50 SMA, which is a reversing signal, and turned it bearish. So, the 50 SMA is acting as resistance for oil, while the 200 SMA (gray) has turned into support.

Crude oil is now stuck between these two moving averages, and it will probably break out soon, but I don’t think that it will move too much from the high at $ 43.50 and the low around $ 35-36, before the US elections, so we will try to trade this range, buying at the bottom and selling at the top.

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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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