Oil Price Rebound to Face Negative Slope in 50-Day SMA

The price of oil may attempt to retrace the decline from the last week’s high ($72.40) as it initiates a series of higher highs and lows.

Crude Oil Price Outlook

Keep in mind, the price of oil bounced back the January low ($64.37) to hold within the yearly range, and a break/close above $70.50 (61.8% Fibonacci retracement) may push crude back towards $72.80 (50% Fibonacci retracement).

Next area of interest comes in around the monthly high ($73.23) but the price of oil may track the negative slope in the 50-Day SMA ($71.88) if it continues to hold below the moving average.

Failure to hold above $67.30 (78.6% Fibonacci retracement) may push the price of oil towards $65.40 (78.6% Fibonacci retracement), with the next region of interest coming in around the monthly low ($64.09).

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