Oil Jumps $3.50 Higher Off Support Above $70
Crude Oil has suddenly turned bullish as the Keystone pipeline remains closed
Oil has been on a bearish trend and has been threatening the support just above $70 recently, as the sell-off accelerated last week on central banks raising interest rates and the global economy showing further weakness. The reopening situation in China on the other hand is not very clear, so sellers have prevailed.
Although the support area above $70 held and earlier today Oil prices reversed higher, rebounding after the previous week’s sharp selloff. US WTI crude futures traded around 5%% higher at $80s per barrel after the quick reversal in the last several hours.
Oil dropped last week to the lowest levels since December last year on concerns that a possible global recession will hit the energy and particularly the Oil demand. But, the news that the Keystone pipeline between the US and Canada remains closed, threatens to tighten supply in the US.
US WTI H4 CHart – The 20 SMA Has Been Broken
Crude Oil surges all of a sudden
On the H4 chart above, US WTI crude posted a sudden reversal after the news on the Keystone Pipeline and so far it is up by more than $3.50. We had left a pending sell Oil signal at the 20 SMA (gray), which had been acting as resistance lately, but that signal hit SL after the surge. Although the bullish momentum has stalled now and we decided to open another sell Oil signal, since the fundamental situation is pretty much the same as before the pipeline news.
US WTI Crude Oil Live Chart
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