Red lines-bullish channel
Blue lines- bearish RSI divergence
Oil price made a new 2023 high earlier today at $95.02. Price made a higher high but the RSI does not follow. The RSI has provided us with a bearish divergence signal. Medium-term trend remains bullish as price continues to trade inside the red upward sloping bullish channel.However in the near term a pull back is justified and very possible. Support at $88 is key for the near term trend. Today's candlestick pattern looks so far as a hammer reversal pattern. If tomorrow Oil price remains under pressure, we should expect a pull back to test the $88-$89 support area.
