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But after the worst losing streak since 2019, oil prices bounced back last week as selling looked overdone. Helping matters were fewer COVID cases in China, which in itself creates a better demand environment. But secondly, the U.S. Dollar retreated from its recent highs, providing a foundation for commodities in general.
This rebound led to a golden cross on oil’s weekly chart. A golden cross occurs when an asset’s short-term moving average crosses above its long-term moving average. This occurred as crude oil‘s 50-week moving average crossed above its 200-week moving average. The move indicates further upside, which is why investors should consider energy stocks such as Apache Corporation (NASDAQ:APA), Continental Resources, Inc. (CLR), and EOG Resources, Inc. (EOG).
