Oil Futures: Correction to find support at the 35.26 20-DMA – Charles Schwab

The daily chart of August 2020 Crude Oil futures is showing the first significant price correction since the recovery in Oil prices began on April 29 with support seen at the $35.36 level, per Charles Schwab.

Key quotes

“Prices have recently moved below the 10-day moving average as well as the uptrend line drawn from the April 29 lows on Thursday, which appears to have triggered some additional momentum based selling pressure.”

“The 14-day RSI has turned down following a brief stint into overbought territory but is still reading a modestly strong 57.28 as of this writing.”

“Traders should pay attention to the 50 level on the RSI to see if the recent downward momentum can take this indicator below 50 or if the price correction stalls out with the RSI holding just above 50.”

“We still have the March 9 chart gap at 42.17 in place on the daily chart that is now acting as strong resistance for the August futures, with near-term support seen at the 20-day moving average, currently near the 35.26 price level and more significant chart support found at the May 22 low of 31.28.”