Crude Oil Sets Fresh 2023 High as RSI Sits in Overbought Zone

The price of oil continues to carve a series of higher highs and lows to register a fresh yearly high ($91.36), and crude may continue to approach the November 2022 high ($93.74) as the Relative Strength Index (RSI) holds above 70.

Crude Oil Outlook

The price of oil has cleared the range-bound price action from earlier this month to keep the RSI in overbought territory, with a break above the November 2022 high ($93.74) bringing the August 2022 high ($98.65) on the radar.

However, failure to test the $93.50 (38.2% Fibonacci retracement) to $93.70 (50% Fibonacci retracement) area may generate a textbook sell signal in the RSI, with a move below the $86.60 (38.2% Fibonacci retracement) to $87.30 (78.6% Fibonacci retracement) raising the scope for a test of the monthly low ($83.46).