Oil Price Pulls Back to Keep RSI Below 70
The price of oil pulls back from a fresh weekly high ($75.29) to keep the Relative Strength Index (RSI) below 70, and the oscillator may show the bullish momentum abating should it continue to move away from overbought territory.
Crude Oil Price Outlook
The recent rally in the price of oil seems to be stalling ahead of the October high ($77.38) as it no longer carves a series of higher highs and lows, and lack of momentum to hold above the $73.00 (61.8% Fibonacci retracement) to $74.00 (50% Fibonacci retracement) zone may push crude back towards $71.70 (61.8% Fibonacci retracement).
A break/close below $69.50 (61.8% Fibonacci retracement) opens up the December low ($66.56), with the next area of interest coming in around $66.20 (78.6% Fibonacci retracement).
At the same time, the recent weakness in the price of oil may turn out to be temporary should crude defend the monthly low ($71.79) but need a break/close above $76.80 (23.6% Fibonacci retracement) to bring the October high ($77.38) on the radar.
--- Written by David Song, Strategist at FOREX.com
Crude Oil Price Outlook
The recent rally in the price of oil seems to be stalling ahead of the October high ($77.38) as it no longer carves a series of higher highs and lows, and lack of momentum to hold above the $73.00 (61.8% Fibonacci retracement) to $74.00 (50% Fibonacci retracement) zone may push crude back towards $71.70 (61.8% Fibonacci retracement).
A break/close below $69.50 (61.8% Fibonacci retracement) opens up the December low ($66.56), with the next area of interest coming in around $66.20 (78.6% Fibonacci retracement).
At the same time, the recent weakness in the price of oil may turn out to be temporary should crude defend the monthly low ($71.79) but need a break/close above $76.80 (23.6% Fibonacci retracement) to bring the October high ($77.38) on the radar.
--- Written by David Song, Strategist at FOREX.com
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