The Trend Is Really Strong, When the 20 SMA Can’t Even Catch Up With the Price - Forex News by FX Leaders
Oil continues the bullish run

The Trend Is Really Strong, When the 20 SMA Can’t Even Catch Up With the Price

Posted Friday, March 5, 2021 by
Skerdian Meta • 1 min read

 

Crude Oil looked dead about a year ago, as US WTI headed in negative territory. But it has turned into the best trade of the year as stocks (particularly tech) continue to struggle. OPEC+ delivered an incredible boost to the market yesterday and the earlier timeline on vaccines is providing a one-two punch.

Today’s rally breaks the January 2020 high of $65.65. That came after the US assassinated Iranian general Qasem Soleimani and Iran retaliated by launching rocket attacks at US bases in Iraq. So now, Oil is trading at the highest ince 2019.

The next resistance level is the 2019 high of $60.60. Crude might be overdue for a pullback but if the market is tight, there’s nothing to trigger it. Oil is also so hated that spec positioning isn’t particularly long. In short, this is such a hated trade that I think it can continue to run if $60.60 breaks. The fact that the 20 SMA can’t catch up with the price also confirms the strength of the trend. In Brent Oil, the 2019 high is way up at $76 so there’s more room to run there (spot at $69).

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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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