Crude oil was on a massive bullish trend from April 2020 until November 2021. US WTI crude increased from $-37.50 to $85.50, where it formed a resistance. There has been the occasional pullback to refresh the trend, but moving averages have been doing a good job as support indicators on the daily chart, as seen below. The smaller MAs have been supporting the price when the trend has been strong, while the larger ones have taken up that duty when the pullbacks have been deeper.

Last month we saw a major retreat in crude oil prices, as WTI fell to $62.30s. That is a decent support zone, which has been holding since May, and it rejected the price again last month. Last week we saw another retreat, but it formed a higher low, suggesting that buyers were starting to take control of oil. This week, the price has reversed higher, and WTI oil has turned bullish, climbing above the moving averages.

Crude Oil – Daily Chart

The support zone around $62 held for US oil for the third time last month

Now oil seems to be heading for the highs again. The Omicron fears, which were the main reason for the retreat last month, have abated, as this variant seems to be a lot less severe, rather like the common flu. The world won’t go into another major lockdown and as a result, the sentiment has improved, with oil climbing around $11 in a week.

Crude Oil – Weekly Chart

The 50 SMA held as support on the weekly chart

On the weekly chart, the trend still seems to be bullish. The price broke below the 20 SMA (gray) last month during the retreat, but the 50 SMA (yellow) held as support. It was tested twice, but sellers failed to send the price below this level, and now buyers have resumed control, pushing the price above the 20 SMA again. So, crude oil is ending the year on a bullish foot, and the trend will probably remain bullish in early 2022.

US WTI Crude Oil Live Chart