Oil Continues the Bullish Trend, Approaching $68 Today
Crude Oil started 2020 on a bearish foot but ended it on quite a strong bullish momentum. The US-Iran tensions and the coronavirus breakout in China sent it lower at first. Then the decline picked up speed when coronavirus traveled to Europe and other place of the world, sending US WTI crude Oil to -$37.50 by April, with the help of Saudis who flooded markets with cheap Oil.
But by the middle of April, the situation reversed and Oil has been bullish since then. During the decline, moving averages such as the 20 SMA (gray) were acting as resistance on the daily chart, then after the reversal they turned into support, pushing crude Oil higher.
All the moving averages have helped during pullbacks lower on smaller time-frame chart, while on the daily chart its the 20 SMA (gray) which has been providing support. The price bounced off this moving average last Wednesday and today it got pretty close to $68 before retreating lower. This moving average looks like a great place to go long on crude Oil, so we will follow the price action and probably go long once we see a retrace down to this level.
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