Who’s Selling Oil at the 50 SMA, As the Climb Has Stalled
Crude Oil made one of the biggest reversals ever last year. US WTI crude Oil fell in a hole in April last year, as Saudis flooded the markets with cheap Oil, leaving no storage place for US producers, which sent the price down to $-37.
But, the situation reversed and since then Oil has been extremely bullish, climbing around $105 from the lows. Buyers have been constantly in charge, apart from a slight pullback in September and October last year, which didn’t last too long.
The bullish trend resumed and US Oil pushed higher to $68 on the first week of March, with moving averages working as support during pullbacks lower. But, Oil has reversed since then, making lower highs, which means that the bullish trend might be over, or at least we’re about to see a considerable pullback.
Oil has lost more than $10 as it fell below $60, but today we are seeing a bullish move, which seems to be over at the 50 SMA (yellow) now, on the H4 chart. The stochastic indicator is now overbought, which means that this bullish move might be over. Besides that, the 50 SMA (yellow) is acting as resistance on the H4 chart, so we are taking a short position here, targeting $58.
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