Oil Price on Track to Test Monthly Low

15 Jul 2024

The price of oil appears to be on track to test the monthly low ($80.81) as it continues to pull back from last week’s high ($83.74).

Crude Oil Price Outlook

The recent rally in the price of oil seems to have stalled ahead of the April high ($87.67) as the Relative Strength Index (RSI) reverses ahead of overbought territory, with a breach below $80.70 (38.2% Fibonacci retracement) raising the scope for a move towards the $78.50 (50% Fibonacci retracement) to $79.00 (50% Fibonacci retracement) region.

Next area of interest comes in around $76.30 (61.8% Fibonacci retracement) but the price of oil may face range bound conditions should it track the flattening slope in the 50-Day SMA ($79.40).

Failure to test the monthly low ($80.81) may push the price oil back towards $83.30 (23.6% Fibonacci retracement), with the next region of interest coming in around the monthly high ($84.52).

--- Written by David Song, Strategist at FOREX.com

22 Jul 2024

Catatan

The price of oil extends the series of lower highs and lows from last week to register a fresh monthly low ($77.55).

A close below the $78.50 (50% Fibonacci retracement) to $79.00 (50% Fibonacci retracement) region may push crude oil towards $76.40 (61.8% Fibonacci retracement), with the next area of interest comes in around $73.00 (78.6% Fibonacci retracement) to $73.20 (78.6% Fibonacci retracement).

However, the price of oil may track the flattening slope in the 50-Day SMA ($79.59) if it struggles to close below the $78.50 (50% Fibonacci retracement) to $79.00 (50% Fibonacci retracement) region.

Need a move above $80.70 (38.2% Fibonacci retracement) to bring $83.30 (23.6% Fibonacci retracement) back on the radar, with the next area of interest coming in around the monthly high ($84.52).

--- Written by David Song, Strategist at FOREX.com