Covid 19 on crude oil
Technical Analysis

Crude Oil (CL) Futures Reverses Course

  • CL rallies 12% this week.
  • Bears vs. BullsWho will dominate?
  • A potential way to trade the current price action using the pullback ema strategy.

CL Trading Above $86, What It Means?

We have seen a swift reversal, with CL gaining over 12% this week. The game is not over for bears, though a few things are on the charts that point to the possibility that prices could fall again into the accumulation zone at $82. Let’s weigh up the Bull and Bear case:

Bears vs. Bulls

Bearish – Price is trading at the 50% fan level, which is likely to see some resistance.

Bullish – Price is trading above the 50 moving average for the first time since July.

Bearish – Dynamic Money Flow retracing into MA band.

Bullish – Price failed to stay below the accumulation zone at $82 and has now traded significantly back above it.

CL Daily Chart

Simple Pullback EMA Strategy

The simple pullback strategy is simple to understand and yields excellent results to the trader that follows the rules with strict intent. I’ve shown a few examples below of potential entries that could have been taken during this recent up trend in Crude Oil. You can find the link to this strategy here.

CL 30 min chart
CL 30 min chart


This week has seen a sharp rally in CL which appears to be overbought. Looking at the 30-minute chart, there are still opportunities for traders to take long positions, but we want to see the 50 EMA remain above the 100 for that to continue. Medium to long-term traders may be looking at this level to short because of the 50% Fibonacci fan level being tested. A reversal pattern, such as a double top on the hourly, could be a great way to enter short.