The energy commodity suffered a loss after reaching the highest level in a few years, the price was overbought, and a retracement was expected after the rally. Now the price remains close in price to the previous five days.
The Bollinger bands are closing up, which means that volatility should be lower. We would expect the price to move laterally for some sessions, as the market seems exhausted. Some of our technical indicators suggest that the price could fall a bit more, finding support at the 81.55 level.
The relative strength index is recovering from an overbought status. It currently is at 56%, which is good news for the price in the mid-term; such correction is necessary for the price to continue moving up in the mid-term.
Our parabolic SAR suggests that the price will continue to lose ground, the price trades below the short-term moving average, giving us a sign of a downtrend.
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