FX.co ★ Technical analysis on Oil for October 2nd, 2023.

Red lines-bullish channel

Blue lines- bearish RSI divergence

Oil price is under pressure for a third session in a row. Price is now trading below $90 and as expected is approaching the lower channel boundary. Technically trend remains bullish as price is still inside the upward sloping channel. Last week we warned bulls that the bearish RSI divergence suggests a pull back is imminent. Next support is found at the double bottom around $88.20 before testing the lower channel boundary at $86.50. There are increased chances that the entire upward movement from $67 is complete. Bulls need to be very cautious. This could be the start of a new downward wave.