Oil Price Rebound Eyes Monthly High

The price of oil may attempt to retrace the decline from the monthly high ($91.88) as crude trades back above the 50-Day SMA ($85.17).

Crude Oil Outlook

The price of oil holds steady after gapping higher at the start of the week, but a close above the $85.70 (38.2% Fibonacci extension) to $86.60 (38.2% Fibonacci retracement) region opens up $88.20 (50% Fibonacci extension), with the next area of interest coming in around $90.70 (61.8% Fibonacci extension).

At the same time, failure to close above the $85.70 (38.2% Fibonacci extension) to $86.60 (38.2% Fibonacci retracement) region may push the price of oil back below the moving average, with a breach below the monthly low ($81.50) bringing the $77.80 (23.6% Fibonacci retracement) area on the radar, which sits just above the August low ($77.59).