Crude Oil Price: RSI on Cusp of Overbought Reading
The price of oil trades to a fresh monthly high ($79.87) as it stages a four-day rally, with the Relative Strength Index (RSI) on the cusp of indicating an overbought reading for the first time in 2023.
Crude Oil Outlook
The price of oil climbs above $78.70 (50% Fibonacci retracement) as it extends the series of higher highs and lows from last week, with a move above 70 in the RSI likely to be accompanied by a further advance in crude like the price action from 2022.
A move above the $82.10 (50% Fibonacci retracement) to $82.60 (23.6% Fibonacci extension) region brings the April high ($83.53) on the radar, with the next area of interest coming in around $87.30 (78.6% Fibonacci retracement).
However, crude may track the yearly range if the RSI struggles to push above 70, and the price of oil may snap the bullish price series if it fails to hold above $78.70 (50% Fibonacci retracement).
A break/close below the $75.10 (38.2% Fibonacci retracement) to $75.60 (38.2% Fibonacci extension) area raises the scope for a test of the monthly low ($69.69), with the next region of interest coming in around the 50-Day SMA ($71.64).
Crude Oil Outlook
The price of oil climbs above $78.70 (50% Fibonacci retracement) as it extends the series of higher highs and lows from last week, with a move above 70 in the RSI likely to be accompanied by a further advance in crude like the price action from 2022.
A move above the $82.10 (50% Fibonacci retracement) to $82.60 (23.6% Fibonacci extension) region brings the April high ($83.53) on the radar, with the next area of interest coming in around $87.30 (78.6% Fibonacci retracement).
However, crude may track the yearly range if the RSI struggles to push above 70, and the price of oil may snap the bullish price series if it fails to hold above $78.70 (50% Fibonacci retracement).
A break/close below the $75.10 (38.2% Fibonacci retracement) to $75.60 (38.2% Fibonacci extension) area raises the scope for a test of the monthly low ($69.69), with the next region of interest coming in around the 50-Day SMA ($71.64).