Oil Bounces After the Dive Upon US Calling for Higher Production from OPEC+
Crude oil has been showing signs of weakness since the first week of June, when it peaked at $77. Buyers are still alive in crude oil, as today’s price action also showed, but they have lost the momentum, with the highs getting lower after every attempt to resume the bullish trend.
US WTI crude retreated to lows around $65last month, when OPEC+ decided to wind down on oil quotas and increase production in August. However, the 100 SMA (green) held as support on the daily chart, and US oil had bounced back up above $74 by the end of July.
Oil has continued to make lower highs since early June
In August though, sellers returned and pushed the price back down to the same support area, piercing below the 100 daily SMA as well this time, but the candlestick couldn’t close below it, which means that it wasn’t a proper break. Oil bounced back up after that, and we decided to open a sell forex signal, since the 20 SMA (gray) was acting as resistance on the H4 chart above.
But oil continued higher to $69. Yesterday we saw another dip in crude oil, as it dived from $69 to $66.70, after the White House called on OPEC+ to boost production, in an effort to combat rising gasoline prices. That sent US WTI crude down, but it reversed back up pretty quickly.
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