Oil Opens the Door for Further Gains After Closing Above the 200 Weekly SMA Last Week
Crude Oil closed above the $ 50 level, as well as above the 200 SMA last week
Crude Oil made quite a reversal last year, especially the US WTI Crude Oil which dived to $ -40 in April, at the height of the global uncertainty. But, the decline ended back then, and the price made a U-turn, forming a big hammer candlestick that month, indicating this big bullish move.
Since then, the pressure has been totally to the upside in crude oil. It initially started as a move against the USD, which turned really weak after the coronavirus broke out, then the global economic rebound in summer improved the sentiment for oil during the summer months.
But the 50 SMA (yellow) turned into resistance on the weekly chart and it stayed that way for some time. In September and October, we saw a slight pullback, after the 50 SMA rejected the price, but the uptrend resumed again in November, and last week US WTI Crude Oil pushed above the big round level at $ 50. The 200 SMA (purple) was also broken on this chart, so the door to $ 60 and $ 65 is now open. The $ 50 level might turn into support for oil now, so we will follow the price action to see if we can open a buy signal if the price retreats down there.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals