Crude Oil turned quite bearish in the second half of September, after the spike following the attack on the Saudi Oil production facilities. But, they were quick to replace the facilities and the bearish sentiment resumed again for Oil, since the global economy continued to weaken.

But, at the beginning of October, the decline ended above the support zone above the $50 level. Since then, WTI crude has been trending higher, which hasn’t been a very strong move, but has remained consistent nonetheless. There has been the occasional pullback lower, such as at the end of October and last week as well.

But, the buyers have returned again and the bullish trend has resumed. This week, the sellers look even weaker, as the pullbacks have been much shallower. They haven’t been able to push below the 50 SMA (yellow) on the H2 chart. The 50 SMA has provided solid support this week and it is pushing the price higher as it moves higher. So, buyers remain in control for Oil.

Russia’s energy minister Novak played down hopes of further production cuts in December earlier this morning, but buyer are holding on nonetheless. The 50 SMA looks like a good place to buy now, so we might go long on WTI crude if the price retraces down to the 50 SMA again.