The price of oil carves a series of lower highs and lows after registering a fresh yearly high ($84.89) earlier this month, with the recent weakness in crude sending the Relative Strength Index (RSI) below 70 to generate a textbook sell-signal.
Crude Oil Outlook
The price of oil appears to be on track to test the monthly low ($78.69) as it falls for the third consecutive day, and crude may struggle to retain the advance from the July low ($70.22) as the RSI falls back from overbought territory to show the bullish momentum abating.
A break/close below $78.70 (50% Fibonacci retracement) raises the scope for a move towards the $75.10 (38.2% Fibonacci retracement) to $75.60 (38.2% Fibonacci extension) region, which lines up with the 50-Day SMA ($75.37), with the next area of interest coming in around the $70.00 (50% Fibonacci extension) to $70.70 (23.6% Fibonacci retracement).
However, the price of oil may face range bound conditions if it defends the monthly low ($78.69), and failure to break/close below $78.70 (50% Fibonacci retracement) may push crude back towards the $82.10 (50% Fibonacci retracement) to $82.60 (23.6% Fibonacci extension) region.
Crude Oil Outlook
The price of oil appears to be on track to test the monthly low ($78.69) as it falls for the third consecutive day, and crude may struggle to retain the advance from the July low ($70.22) as the RSI falls back from overbought territory to show the bullish momentum abating.
A break/close below $78.70 (50% Fibonacci retracement) raises the scope for a move towards the $75.10 (38.2% Fibonacci retracement) to $75.60 (38.2% Fibonacci extension) region, which lines up with the 50-Day SMA ($75.37), with the next area of interest coming in around the $70.00 (50% Fibonacci extension) to $70.70 (23.6% Fibonacci retracement).
However, the price of oil may face range bound conditions if it defends the monthly low ($78.69), and failure to break/close below $78.70 (50% Fibonacci retracement) may push crude back towards the $82.10 (50% Fibonacci retracement) to $82.60 (23.6% Fibonacci extension) region.