Selling the Retrace Higher in Crude Oil, As US Govt Plans More Releases from Its Reserves

Crude Oil has been quite bearish since the middle of June, as it became clear that the global economy was having difficulties, with the prices surging higher and central banks raising interest rates pretty fast. The price had formed a bottom below $86 though, but the decline resumed again earlier this week and the support zone was broken.

Crude Oil H1 Chart – Buyers Facing the 100 SMA

Can the previous support turn into resistance for the US WTI Oil?

Today we are seeing a recovery in crude Oil prices after opening in negative territory amid volatile trade. Buyers managed to push the price above the 50 SMA (yellow) on the H1 chart which immediately turned into support and now they are testing the 100 SMA (green), which has acted as support and resistance before.

Analysts have said that Russia’s threat to halt Oil and gas exports to Europe in case a price cap is imposed on energy exports from the country, helped push the prices higher. However, demand concerns amid renewed lockdowns in China which is one of the world’s largest importers of crude Oil is limiting the gains.