Sep 30 2022, 08:00+05:00
VOT Research Desk
Analytical Viewpoint Crude Oil
As it reverses ahead of the January low ($74.27), the price of oil forms a string of higher highs and lows, and the negative momentum may continue to slow as the Relative Strength Index (RSI) moves away from oversold territory.
The $84.20 (78.6% expansion) to $84.60 (78.6% expansion) zone returns to the radar with the rise back above the Fibonacci overlap at $78.50 (61.8% expansion) to $79.80 (61.8% expansion), with the next area of interest coming in around $88.10 (23.6% expansion).
The $90.60 (100% expansion) to $91.60 (100% expansion) level becomes accessible with a move above the 50-Day SMA ($88.86), but the price of oil may follow the downward slope of the moving average, similar to the price action seen last month.
With the next area of interest being around $73.20 (38.2% expansion) to $74.40 (50% expansion), which corresponds with the January low ($74.27), failure to hold above the overlap around $78.50 (61.8% expansion) to $79.80 (61.8% expansion) may push the price of oil back towards the $76.50 (50% retracement) to $76.90 (50% retracement) region.
