Crude Oil prices’ rebound from the April lows is showing signs of losing some steam as the August WTI contract (CLQ20) has seen its sustained price recovery lose momentum over the $40 barrel mark, according to Joe Schulte from Charles Schwab.
Key quotes
“The market appears to be taking a breather with prices struggling to extend much beyond $40. Bulls may be taking profits against the technical resistance formed off the March gap around the $41 mark. A series of failed tests of that area extend back to early June and have solidified the resistance.”
“Rising concerns over the recent surge in coronavirus cases has tempered recovery ideas. Fears of a halt in reopening plans or the return of lockdowns has weighed on prices.”
“The 41.63 high from last month will continue to offer the nearest resistance followed by the bottom of the gap formed at 42.17 from the March price plunge.”
“The 14-day RSI is at 64% and approaching overbought markers.” “Sell-offs will find first support at the 37.10-37.50 range of lows from late June. Beyond the 34.66 low from mid-June marks the next support with the 50-day moving average crossing at the 34.40 mark.”
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