FX.co ★ Technical analysis on Oil price for October 25th, 2023.

Blue lines- Fibonacci retracement levels

Red lines- bullish channel

Oil price recently broke out of its bullish channel providing a bearish signal after a strong rise from $67. The first part of the decline formed a low around $81.50. Price bounced and back tested the broken channel from below. Price made a lower high at $90.86 and got rejected at the 61.8% Fibonacci retracement level of the the first downward move. Price is again under pressure and has decline from $90.86 to $83.80. Failure to hold above $81.50 will open the way for a deeper pull back towards $75-$70. Oil price remains vulnerable to a deeper pull back as long as it trades below $90.86.