The 20 Daily SMA Holds As Support for Oil - Forex News by FX Leaders
Looking to buy this retreat in crude Oil

The 20 Daily SMA Holds As Support for Oil

Posted Tuesday, March 2, 2021 by
Skerdian Meta • 1 min read

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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About the author

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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