This week, the energy commodity lost 4.10% in two sessions, which placed the price below the support level at $73.74 at our 23.6% Fibonacci retracement.
The breakout is not yet consolidated, and the price is showing signs of recovery. The pair is starting to gain ground, minimal, but it shows it is not done. In the upcoming sessions, we could see the price above that level.
The Bollinger bands are slightly closing, which indicates a price consolidation. The pair currently trades very close to the lower band. We can consider the price relatively low, which will likely incentivize investors to place long positions in the commodity.
Our parabolic SAR indicator suggests that the price will resume its uptrend soon. We believe that the pair is capable of breaking the $77.82 high reached ten sessions ago. The relative strength index is at 47%, which is a very favorable situation for Brent Oil; this will allow the price to resume the uptrend without worrying about entering an overbought status in the short term.
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