Brent sell

Oil in local overbought condition ready for downward correction

10 August 2023 156
Oil in local overbought condition ready for downward correction

Oil has remained in a technically overbought condition since yesterday. The RSI indicator entered the zone above 80% twice on the hourly timeframe yesterday.

 

In addition, as another technical sign of the emerging correction, there is a clear divergence of the price and the RSI line, which also does not favor the continuation of growth.

 

As for fundamental factors, it is important to note the U.S. Energy Information Administration's outlook, according to which during this quarter the Brent oil price will tend to reach the level of $85 per barrel. As of 5:00 a.m. GMT, Brent is trading around $87.1 per barrel. 

 

This $2 ahead of the forecast estimate also indicates that the price is in an overbought condition locally, and will subsequently correct downward to at least the prior support level at $86.3/bbl.

This content is for informational purposes only and is not intended to be investing advice.

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