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The momentum has turned bearish for crude Oil today

Crude Oil Reversing Back Down from Moving Averages, Now Facing the 50 SMA

Posted Monday, April 5, 2021 by
Skerdian Meta • 1 min read

Crude Oil has been bullish for about a year, since April last year when it reversed higher from the lowest level on record, at $-37.50 for the US WTI Oil. The bullish momentum continued for nearly a year and Oil climbed more than $100 from the bottom, reaching $68 at the beginning of March.

But, after the first week of March, the situation shifted and the trend changed, at least for March. Oil lost nearly 11 cents from the top, as it retreated lower. This doesn’t mean that the trend has changed, although, buyers are finding it hard to push the price back above the moving averages on the H4 chart.

We have opened a sell forex signal in crude Oil at $60.90s and have been around 100 pip in profit a few times. Today, the 100 SMA (green) and 200 SMA (purple) rejected the price once again and US WTI crude Oil is reversing down now.

We’re again in profit now, with the price around 60 pips below our entry level, but the 50 SMA (yellow) is acting as support now. The stochastic indicator became overbought on this time-frame chart during the jump last Friday.

But it is heading down today, which is a positive sign for us. If the 50 SMA goes soon, then we will be heading for Thursday and Friday lows below $59. But, this moving average is providing support now, so let’s see if sellers can push below it.

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