Crude Oil Reaches $110 After Bouncing Off the 50 Daily SMA

At the beginning of March, there was a fast increase in crude oil prices, with US WTI rising to $130 from $95 in about a week, but the move was entirely retraced in the following week. The price retreated from the highs and fell below $100, reaching $93. But the 50 SMA (yellow) held as support on the daily chart and after an upside-down pin candlestick, we’re seeing a reversal higher.

So now we’re seeing a second bounce and that’s certainly more than a dead-cat bounce so far. The rally comes despite more signs of an Iran nuclear deal and rising covid in China. The levels I’m watching next come at $112.27 which is the 50% retracement of the recent drop, followed by the 61.8% level at $116.66. Oil cooled off as Saudi Arabia commented that they would increase oil production, while there were hopes of peace talks between Russia and Ukraine which improved the sentiment. But, now tensions are increasing again, so oil is climbing up.

Crude Oil Daily Chart – The 50 Daily SMA Held As Support Again

Crude Oil has increased more than $15 in the last three days

Kremlin plays down any meaningful progress in peace talks

• Moscow says that there is still no basis for a possible Putin-Zelensky meeting
• The degree of progress in peace talks is not as big as it should be
• No basis for possible Putin-Zelensky meeting; there needs to be significant progress made first
• Russia is ready to work faster on negotiations than the Ukraine side

As you would expect. Both sides will continue to put up this charade until there is a chink in the armor amid the war on the ground. And so, it seems like there will be no major developments today. Carry on as you will.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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