Oil Price Pushes Above Opening Range for August

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The price of oil stages a four-day rally after defending the February low ($71.41) to register a fresh monthly high ($80.16).

Crude Oil Price Outlook

Keep in mind, the rebound from the monthly low ($71.67) kept the Relative Strength Index (RSI) out of oversold territory, with $80.70 (38.2% Fibonacci retracement) on the radar as crude pushes above the opening range for August.

A break/close above $83.30 (23.6% Fibonacci retracement) opens up the July high ($84.52) but the price of oil may face range bound conditions amid the flattening slope in the 50-Day SMA ($78.88).

Lack of momentum to hold above the $78.50 (50% Fibonacci retracement) to $79.00 (50% Fibonacci retracement) region may push the price of oil back towards $76.30 (61.8% Fibonacci retracement), with the next area of interest coming in around $72.90 (78.6% Fibonacci retracement) to $73.20 (78.6% Fibonacci retracement).

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