We’re Back in Profit in Oil, As the 200 SMA Rejects the Price Once Again
Crude Oil used to be really bullish for about a year, from April when it reversed from around $-40, despite the growing political, social and economic uncertainty all over the globe. US WTI crude stalled at around $40 for some time in October, but resumed the bullish trend after the US presidential elections.
Buyers pushed above the $50 and $60 levels without much trouble, but after the first week of March the bullish trend came to an end, for the time being that is. Oil retreated lower, falling more than $10, from $60 to $57 lows.
Buyers have been trying to turn crude Oil bullish for the last two weeks, pushing higher, but all the attempts have failed at the 200 SMA (purple) on the H4 chart. This moving average has turned into a solid resistance and we went short on US Oil last Friday.
Now, Oil has turned down again after the latest rejection today, but sellers are facing the 50 SMA (yellow). If this moving average goes, then the door will be open for yesterday’s lows. I(f not, then we might see a jump from here once again. We’re holding on to our sell signal, hoping that sellers will continue to push lower.
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