The price of oil appears to be defending the monthly low ($66.80) as it extends the rebound from the weekly low ($67.05), but failure to push above the 50-Day SMA ($71.95) may undermine the recent rebound in crude as the moving average reflects a negative slope.
Crude Oil Outlook
The price of oil may track the June range as it attempts to push above the $70.00 (50% Fibonacci extension) to $70.60 (61.8% Fibonacci retracement) region, with a push above the moving average raising the scope for a run at the June high ($75.06).
Next area of interest comes in around $75.60 (38.2% Fibonacci extension), but crude may track the negative slope in the moving average if it struggles to break/close above the $70.00 (50% Fibonacci extension) to $70.60 (61.8% Fibonacci retracement) region.
Failure to defend the monthly low ($66.80) may push crude towards $64.40 (61.8% Fibonacci extension), with a move below the yearly low ($63.64) opening up the $54.40 (78.6% Fibonacci retracement) to $56.50 (78.6% Fibonacci extension) area.
--- Written by David Song, Strategist
Crude Oil Outlook
The price of oil may track the June range as it attempts to push above the $70.00 (50% Fibonacci extension) to $70.60 (61.8% Fibonacci retracement) region, with a push above the moving average raising the scope for a run at the June high ($75.06).
Next area of interest comes in around $75.60 (38.2% Fibonacci extension), but crude may track the negative slope in the moving average if it struggles to break/close above the $70.00 (50% Fibonacci extension) to $70.60 (61.8% Fibonacci retracement) region.
Failure to defend the monthly low ($66.80) may push crude towards $64.40 (61.8% Fibonacci extension), with a move below the yearly low ($63.64) opening up the $54.40 (78.6% Fibonacci retracement) to $56.50 (78.6% Fibonacci extension) area.
--- Written by David Song, Strategist