The world is connected and for entities like crude oil, currencies, cocoa, gold, and silver the international markets not only decide the fortunes of nations, but also affect individuals like you and in tangible ways.
Currently the focus is on petrol and diesel prices in India.
As we see in the technical analysis chart of Bren Crude Oil futures below, the crude oil prices broke to upside out of a range in mid-November 2020.
Since that time the price has been moving higher with its 20 day simple moving average (SMA), and as of today, the 200 SMA has also turned and is rising.
What does this author’s interpretation in technical analysis indicate for the future?
The uptrend i.e. the rise in price is a healthy one. How do we know that? The 20 SMA is rising at a sustainable angle, and the prices never go far above this moving average. Further, the moves away from this moving average are digested by the market with either of price-wise or time-wise correction.
Thus, for the time being, the world needs to accept the possibility of rising crude oil prices.
However, in the coming week or so, the price may come down to 57.50 level but at this point in time the estimation is that they will move back up higher.
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