The Commodity has been finding new highs in more than three years; there could be a potential retracement as the pair enters an overbought status.
The Bollinger bands are wide and moving up; however, the price is trading closer to the upper band, suggesting that it is relatively high, which could drive the price down in the short term; we have not seen Brent crude on these levels since October 2018.
The relative strength index entered an overbought status with 73%; in the past, Brent Oil has not stayed oversold for a long time, which could make the price drop in the short term; however, some fundamental factors affect the price.
Our parabolic SAR indicator suggests that the price will continue to climb in the following days, the gap between the moving averages continues expanding. Still, the market might be exhausted at this point.
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