Oil prices fell at the beginning of Asian trading on Thursday before rising again in the European period, and these declines were supported by the minutes of the US Federal Reserve meeting released yesterday, which indicated that there are discussions on further tightening of interest rates if inflation remains stable, a move that could harm oil demand if true.

The minutes of the Fed meeting stated that many participants had a desire to tighten policy further in the event that inflation risks materialized in such a way that such an action would be appropriate.

Technically,  oil is trying to form an inverted head and shoulders pattern on the four-hour frame, where it is now trying to break through the downward price channel of the two-hour frame, which if it breaks through with one candle, it is possible to buy oil directly and with retesting the broken channel, and we are waiting for further ascent next period towards the levels of 79.50 dollars per barrel.

In the event of a breakout of the neckline shown in the attached chart, we expect a further rise towards the USD 83.00 levels at the very least.

Especially since oil is a positive divergence component on the current divergence index.

This scenario fails if the levels of 76.50 USD per barrel are broken.