FXStreet (Córdoba) – Crude oil prices rallied on Monday erasing previous August losses to close in positive territory for the month, having bounced from below $38.00 where it bottomed out last week.
WTI rose beyond $49.00 a barrel to hit its strongest level in a month. The rally was underpinned by a publication from the OPEC, expressing worries regarding the ongoing pressure on prices in the energy complex as a result of both speculation and an increase in crude supply glut.
Crude oil technical view
“Technically, the daily chart shows that the price has extended further above its 20 SMA, whilst the Momentum indicator heads higher almost vertically into overbought territory, and the RSI indicator also advances strongly around 63”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators are beginning to get exhausted in extreme overbought levels, whilst the 20 SMA has crossed strongly higher above its 100 SMA, well below the current level”.
Some consolidation should be expected around the current levels, yet a break above the psychological 50.00 level should lead to further gains during the upcoming sessions, Bednarik added.
Support levels: 47.75 47.10 46.60. Resistance levels: 49.30 50.00 51.90.
(Market News Provided by FXstreet)