Crude Oil Futures hold at four-month highs - Charles Schwab

FXStreet notes that September Crude Oil futures have continued their impressive price rebound reaching four and a half month highs this week as have nearly doubled from the lows climbing above the $40 mark. The EU stimulus package and a weaker USD have lent support to the black gold. Technically, September WTI contract (CLU20) faces first resistance at the $44.41 200-DMA, per Charles Schwab.

“A number of factors have contributed to the bull camp confidence. First, Crude has seen a boost as the U.S. Dollar has continued its tailspin dropping to 4-month lows this week. In addition, the EU concluded a 4-day meeting earlier this week passing a 750 billion-euro stimulus package.” 

“The gap created by the early March price plunge was filled at the 42.50 level Tuesday. Next resistance is waiting at the 200-day moving average crossing today at the 44.41 mark today. Beyond the 48.97 level offers the next resistance.” 

“Pullbacks will find support at Monday’s 39.97 low, followed by the 38.77 and 37.32 marks. Longer-term support comes in at the bottom of the current $7 wide channel established since the end of May at the $35 mark.”

“The 14-day RSI is sitting at 61 and bears watching for overbought conditions developing.”