Is Crude Oil Bullish Or Bearish In Bigger Charts Now? - Forex News by FX Leaders
US Oil inventories posted another buildup last week

Is Crude Oil Bullish Or Bearish In Bigger Charts Now?

Posted Tuesday, July 19, 2022 by
Skerdian Meta • 2 min read

Crude Oil prices have been bullish in the last three days, as sentiment has improved and the USD has lost some steam due to odds of a 100 bps rate hike by the FED diminishing. US WTI crude increased to $103.40s earlier this morning, but reversed back down and fell 2% after soaring by more than $5 barrel in the previous session, weighed by fears that an economic slowdown will hit the Oil demand, though tight supply and a weaker dollar curbed some losses.

The visit of US President Joe Biden to Saudi Arabia did not yield many positive results, as Saudi leaders did not promise to considerably increase crude Oil production soon. Saudi ministers said the OPEC would base their decisions on market factors. He stated that Saudi Arabia which is the third global producer, will raise its production capacity to 13 million barrels per day by 2027 from a current capacity of 12 million bpd, and “after that, the Kingdom will not have any more capacity to increase production.”

Crude Oil Weekly Chart – Is the Retrace Down Complete?

The 50 SMA acting as support on the weekly timeframe

On the weekly chart, the US WTI crude Oil reached $130 in early March and after a pullback lower, it increased above $120 last month. But, the last five weeks have been pretty bearish and US Oil fell pretty close to $90 last week, where it met the 50 SMA (yellow) on the weekly chart. The stochastic indicator is oversold which means that the pullback down is over. This week we are seeing some bullish pressure, but let’s see how far buyers can push becuse they’re finding difficulty at the 104 resistance zone.

Crude Oil Daily Chart – The 200 SMA Acting As Support

MAs are turning into resistance at the top

On the daily chart moving averages have been providing support for crude Oil during pullbacks lower but they have turned into resistance after being broken. Although, now we will see if they will hold as resistance during this bounce. If they do and Oil reverses down below $100, then the trend will have shifted for real.

US WTI Crude Oil Live Chart

WTI
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