Oil Takes Out the $ 55 Level, As MAs Keep Pushing it Up

Last week's consolidation in crude Oil ended as soon as the 100 SMA caught up with the price

Skerdian Meta•Tuesday, February 2, 2021•1 min read

The bullish momentum in crude Oil doesn’t seem to be ending anytime soon. US WTI crude Oil has been on a bullish trend since it reversed in April, following the dive to $ -37.50 back then and hasn’t found many strong resistance zones on the way up.

In September and October we saw a slight retrace down, but the bullish trend resumed again in November and it has been breaking major resistance levels one after another. The USD has played a part in this bullish move since it has been on a constant decline.

But the decline has stopped in the last few weeks, while crude Oil has been climbing higher. This shows that Oil is also increasing on its own merit. During this time, moving averaged have been doing a great job as support during pullbacks, pushing the price higher.

Last week we saw a consolidation, but once the 100 SMA (green) caught up, the bullish trend resumed again. So, the upward momentum is continuing in Oil and we will try to buy pullbacks at the moving averages, especially if we get a bullish reversing signal as well.

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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.