FX.co ★ Technical analysis on Oil for August 1st, 2023.

Blue lines- bullish channel

Red line- bearish RSI divergence

Oil price has reached as high as $82 as expected several weeks ago when Oil price was trading around $68-$70. Back then we warned bears that the chances of an upward reversal had increased and a potential move towards $82 is very probable if price were to break above the resistance around $70.50-$71. Technically Oil price remains in a bullish trend as price continues making higher highs and higher lows. At the same time price continues to respect the channel boundaries. The RSI has started providing bearish divergence signs. This is not a reversal signal but an important bearish warning. Short-term support is found at $79 and a break below it will signal a trend reversal.