The energy commodity reached its highest level in more than two years as it finally broke the resistance at $80.72.
The Bollinger bands are very wide, and we expect high volatility during the upcoming sessions. The price is currently trading above the upper band, suggesting that it is relatively high; this could drive the price down in the short term, although the general trend continues to be upwards.
The relative strength index is at 72%, which places the commodity as overbought, another reason why we believe that there could be a price correction in the next trading sessions. However, we have seen Brent Oil stay overbought for more than ten days before a pullback.
Our parabolic SAR indicator suggests that the price will continue to increase, but this is a lagging indicator that requires a confirmation candle to be more accurate. In current circumstances, this is not a reliable indicator.
The gap between the short and long-term moving averages increases, suggesting that the general trend is still upwards. Our Fibonacci retracement shows a support level in the 76.85 levels.
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