Oil Is Also Surging, As the 20 SMA Keeps Pushing It Higher
It looked like crude Oil was going to be out of the financial markets when US WTI crude fell to $ -37.50 in April last year. The situation is changing fast in favour of the electric cars, which will drive diesel cars out of existence eventually and make crude Oil almost useless, although it could be used for rubber, other than for energy products and sub-products.
But, Oil made a big reversal back then and has been bullish ever since. It climbed to $ 43.50s in August, which means an $ 80 increase from the lows, but stalled there and retreated lower to $ 33 in September and October.
The USD decline which followed the US presidential elections in November helped Oil resume the bullish trend again and it broke above the previous high, as well as above the $ 50 level without much resistance. Moving averages have been doing a great job in providing support, especially the 20 SMA (gray) which keeps pushing the price higher.
This shows that the upside momentum is really strong, particularly when the smaller period moving averages such as the 20 SMA provide support on the smaller time-frame charts, such as the hourly one. So, everything is pointing up and we will look to buy the dips lower.
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