The 50 SMA Holds As Support in Crude Oil

Getting ready to buy Crude Oil, since it is retracing lower today

Skerdian Meta•Monday, March 1, 2021•1 min read

Crude Oil has been bullish since April last year, when US WTI came back to life from $ -37.50. The bullish run stopped for a while in September and October, but it resumed again in November, as the decline in the US continued after the US presidential elections.

As a result, oil pushed higher, breaking above $ 50 in January and above $ 60 in February. During this period, moving averages were doing a great job in providing support during retraces lower, pushing the price up and making higher highs.

The 100 SMA (green) has held as support when the pullbacks have been deeper, while the 50 SMA (yellow) has been doing that job when the trend has picked up pace. Last week, US WTI Crude pushed close to $ 64, but it is reversing down today. Although, we are waiting for the 50 SMA to catch, so that we can try to open a buy forex signal in crude oil.

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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.