Crude Oil has been running higher despite the new coronavirus restrictions in Europe and north America. It stalled in September and October after US WTI crude Oil gained around $ 80 from April, but in November the uptrend resumed again and it actually picked up further pace.

Moving averages have been doing a great job in providing support on the H4 chart during the climb since early November, particularly the 50 SMA (yellow). The price climbed to $49.20 by Friday evening, but it opened with a bearish gap lower on Sunday evening when the Asian session started and continued lower until last night.

The retrace in Oil seems to be over

The decline came after comments from Russia which wants another increase in production quotas by 500 million, after the 500 million bpd OPEC already agreed to increase. As a result, Gold lost around 300 pips, but the 100 SMA (green) held as support twice.

It was pierced  for a while, but the price moved back above it and now it has bounced 100 pips higher. But the 50 SMA might turn from support into resistance now. Although buyers seem determined to push above it. We will see if they will push above the 50 SMA before the Christmas break which starts tomorrow in the evening.