Strong Buying Pressure in Crude Oil at Moving Averages
Crude Oil has been bullish since April last year, when US WTI Crude reversed from the abyss. The bullish trend stalled for a breather for a little while in September and October, but then resumed again in November, and it has only been picking up pace.
February, in particular, has been really bullish for crude oil. In January, buyers pushed above the big round level at $ 50 and then traded sideways until this month. Oil resumed the bullish trend as soon as February got underway, climbing from around $ 52 to $ 58.60 earlier today.
As we can see from the H1 chart above, moving averages have been doing a great job as support for oil. The 20 SMA (gray) has been pushing the price higher, while the 50 SMA (yellow) has held as support at times when oil has pulled back lower.
Today, we saw a 100 pip pullback, but the decline stopped at the 50 SMA again, and the price has bounced 50 pips higher now. This shows that the buying pressure is strong at the MAs, so we will try to go long on crude oil, since the trend remains quite bullish.
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