Crude oil long-term projection

OPEC and major partner of the consortium decided to have a deeper cut on oil production at the beginning of this month. The decision is vital for the current upside in crude oil prices. It seems crude oil will continue its upward movement for now and waiting for development in the trade war between the U.S and China.

Currently, crude oil trend is bullish and traders will expect further upside.

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New Month

Monthly chart

This month, crude oil stage rally from the 50% retracement level and manage to reach the monthly SMA 200. The price is going to test the resistance level and waiting for the market reaction. A close above the averages is positive and might indicate a further upside toward $67.00.

Weekly chart

The bullish outlook on the monthly chart also seen on the crude oil weekly chart. The price has closed above the weekly SMA 200 and currently distancing itself from the averages. Without any change in the sentiment then crude oil could continue upward to $67.00

Daily chart

Crude oil also shows bullish signs on the daily chart after it crossed above daily SMA 200. No reason to take short positions yet. Traders who have long positions could continue to hold the positions until there is a major bearish pattern formed on the chart.

Trade plan

There is hardly a reason to take any short positions in crude oil for now. On the other hand, long positions are better taken when the price makes the bearish correction. Traders could watch $60.00 and $57.60 for opportunity to enter long positions.