The trend in crude Oil has reversed since the middle of June, as highs keep getting lower. Moving averages have been acting as resistance during retraces higher on the H4 chart, which confirms the downtrend scenario, although a support zone has formed above $90 and in the last several days we have seen another retrace higher, which has stalled at this moving average.

Oil prices rose today for the second day on increasing concerns about tightening European supply, as European leaders continue to refuse Russian energy, which has reduced the gas flow to Europe from the Nord Stream. This has led to a surge in natural gas and crude Oil prices.

Crude Oil H4 Chart – Will the 100 SMA Hold As Resistance Again?

Oil keeps making lower highs

But on the daily chart crude Oil has just started to reverse higher in the last few days. We see that the 200 SMA (purple) held as support for the second time and now the price is bouncing higher. Although, buyers were finding it hard to push above the $99 level and now the price has retreated below $98. But buyers still have toom to push higher to the 100 SMA (green) which stands at around $104, or to the 20 SMA (gray) which comes at $100.

Crude Oil Daily Chart – The 200 SMA Holds as Support

US WTI Oil finding support above $90

Although, the main trend is still bearish as signs of weakening economic activity in the West continued to weigh on Oil prices. The preliminary manufacturing and services PMI data released late last week showed that the economic activity in the US and Eurozone fell into contraction last month, a sign that soaring prices of energy, food, services, and goods are taking their toll on the consumer and the economy. So, we are preparing to open a sell Oil signal.