CL New York Crude Oil Futures – Oil prices are poised for a rebound, testing resistance at the 25-day moving average

Oil prices fell slightly on Friday as traders anticipated declining demand in the United States, the world's largest oil market, and increased supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies this fall. U.S. crude futures fell 59 cents, or 0.91%, to settle at $64.01. The summer driving season in the United States will end after the Labor Day holiday on Monday, marking the end of the peak demand period.

As seen on the technical chart, the MACD indicator has just broken above its signal line, suggesting continued upward potential for oil prices. However, the key question is whether it can cross the 25-day moving average, which has capped the past two days' highs. The 25-day moving average currently stands at $64.80. Further targets are expected to extend to the 50-day moving average at $65.85 and the 250-day moving average at $68.10. The next level is 70.00/50, where oil prices reversed course in late July. The supporting levels are expected to fall back to 63.00 and 62.30, with the higher support levels estimated at 61 to 60.

Forecast Range:
Resistance: 64.80* – 65.85 – 68.15 – 70.00/50*
Support: 63.00 – 62.30 – 61.00 – 60.00*

Any questions? contact our professional analysis team