The energy commodity reached a new high for the last three years and traded at 83.45 at some point of the previous trading session. The price had a strong retracement back to the support level at 79.04 on our 23.6% Fibonacci retracement, and then it managed to recover almost all the ground it lost before.
The Bollinger bands are wide and moving up; this signals the continuation of the upwards trend; however, the price trades closer to the upper band, suggesting that it is relatively high, which could cause a temporary pullback to the support area once again.
The relative strength index is at 71%, which is considered overbought; this will likely cause the price to drop as well; the pair need to gather strength to continue moving upwards for the mid and long-term.
Our parabolic SAR indicator suggests that the price will continue to move upwards; however, we are not getting more signals from other technical indicators that suggest the same. We believe that a pullback is imminent; the RSI could stay overbought for a few sessions before seeing a price drop.
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