Oil Remains Really Bullish, As It Heads to $60

Crude Oil retraced lower today, but bounced off the 20 SMA once again

Skerdian Meta•Thursday, February 11, 2021•1 min read

The bullish trend is only getting stronger

Crude Oil has been really bullish since November. US WTI crude Oil dived lower to around $ -37.50 by April last year as Saudis flooded markets with cheap Oil, leaving no storage room for US Oil producers. But, the price reversed that same month and has been bullish since then.

During September and October we saw a slight pullback to around $ 33, but the bullish trend resumed after the US presidential elections and hasn’t stopped since then. In Fact, the trend is getting stronger, which can be observed on the H4 chart above.

The 100 SMA (green) has provided support on deeper pullbacks several times, while the 50 SMA (yellow) has been doing that job most of the time. This shows that pullbacks haven’t been too deep, meaning that the bullish trend is strong.

This month though, the trend has become even stronger, with the 20 SMA (gray) pushing the price higher. Earlier today we saw a slight pullback, buyt buyers came in once the 20 SMA caught up with the price. So, the upside momentum is really strong in crude Oil and we will try to go long if we see another retrace lower.

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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.