Baxia Markets
October 08, 2021

Brent Oil could drop in the short term.

technical analysis top header -01

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.


Brent Oct 7th 2021

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.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 


energy, commodities, trading conditions, technical analysis, trading indicator

Subscribe by Email