Crude Oil Breaks Above $ 60, After Opening With a Bullish Gap Last Night

Crude Oil has been bullish since April last year, coming back from the deep abyss and marching higher continuously. There was a retrace lower in September and October, which took the price below the moving averages, as shown in the chart above, but the retrace ended and the bullish trend resumed again in November, after the US presidential elections.

The price moved above the moving averages again, and it hasn’t looked back since then. The 50 SMA (yellow) and the 100 SMA (green) have been providing solid support for US WTI Crude Oil, pushing the price higher since early November.

Buyers broke above the $ 50 level without much trouble, indicating strong buying pressure. Last week we approached the next big target at $ 60, but the week ended with oil closing just below that big round zone. However, last night the price opened with a gap 50 pips higher, taking oil above $ 60, where it remains for now. So, buyers are totally in charge here, and we will try to buy oil, probably after a retrace lower to Friday’s closing price, in order to close the gap before the next bullish move higher.

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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.
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