The 20 Daily SMA Holds As Support for Oil
The retreat in crude Oil seems to have ended at the 20 SMA on the daily chart
Crude Oil has been really bullish since November last year. US WTI crude reversed from the abyss in April 2020, climbing to $ 43.50, but stalled there and in September and October it retreated lower slightly.
Although, the retreat ended at the 200 SMA (purple) on the daily chart. That moving average held as support and in November the bullish trend resumed, right after the US presidential elections, with the USD turning weaker too.
Crude Oil resumed the uptrend and turned even more bullish than before. The price moved above all moving averages and the 20 SMA (gray) turned into support, pushing the price to new highs. This also shows that the bullish trend is really strong, since the the smallest moving average is doing that job.
In the last two days we have seen a retrace lower, but it seems like the 20 SMA is holding again on the daily chart and the price has bounced 100 pips higher now. This might be a good opportunity to go long on Oil, but we will follow the price action today and probably tomorrow, to see if we can get a better entry point lower, closer to the 20 SMA.
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