The energy commodity is showing signs of recovery after losing more than 20% over the last ten days. The price is finding support at the 38.2% Fibonacci retracement on the 4.98 level, the commodity is still down 23.64% below the previous high of 6.521.
The Bollinger bands are very wide and they continue to open up at the edge, the lower band is opening more, indicating that the price could still fall below the support level. If the price falls, we estimate it could reach 4.503.
The relative strength index is at 43%, it has stayed close to this level since November 8th, the markets are uncertain as there has been a crossing of the short and long-term moving averages which generally indicates a trend reversal.
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