Crude Oil Remains Bullish, Despite OPEC’s Compliance Falling
Crude Oil reversed higher after finding support at the 50 SMA
Crude Oil used to be quite bullish from April until August, following the big crash to -$40 for US WTI crude, but then it stagnated below $43.50 for a couple of months. Although, in the week before the US elections, the sentiment turned negative for Oil and the USD turned quite bullish.
Crude Oil is traded in USD, so it declined, falling to $33.50. But, it reversed in the election week, as the USD turned bearish again, climbing to $43 last week. In the last two days, the price declined, but the 50 SMA (yellow), which stood just above $40, held as support on the H4 chart and we saw a bounce.
Now crude Oil is bullish again, despite OPEC announcing that the compliance of the production quotas fell. But, the area around $43.00-50 will be a tough zone for buyers, so we might go short there, if we see a bearish reversing signal.
OPEC Sources via Reuters
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