Anyone Itching to Buy the Pullback in Oil at MAs?

 

It’s a slow start for the new week, with none of the intense swings we saw last week, apart from the considerable retreat in cryptos. I suspect that ceasefire won’t last throughout markets but an early mover is crude Oil.

It was higher during the Asian session, but has turned lower early in the US session. That was also the playbook price action last week so it’s something to keep an eye on. As for the price action, UK Brent crude topped out at $70.03 and is down to $68.29 so that’s a sizeable swing. WTI is down to $64.50 from a high of $66.40.

None of it really changes the picture. Oil is consolidating near the recent highs and initial support is $63.13 in WTI, which was last week’s low. Although, Oil is finding support at the 50 SMA (yellow) on the H4 chart, above $ 64. This might be a good opportunity to go long on Oil, but the stochastic indicator is not oversold yet, so we are waiting until it becomes oversold and probably go long then.

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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