The energy commodity is down more than 15% in only four trading sessions, the price fell to the high 60’s and could drop more in the short term due to some fundamental elements.
The Bollinger bands are very wide, they opened up aggressively, something we had not seen in a very long time, the price trades below the lower band, suggesting that it is relatively low, we might see a small recovery in the short term, but it will be a very slow recovery, possibly followed by a consolidation period.
The relative strength index is at 27% which is considered oversold, investors might look at this pair and be interested in buying the dip. From a technical analysis point of view, we don’t believe it will continue to fall in the short term as it is already at a relatively low price.
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