The energy commodity did not stay above the $6 barrier for long; the price dropped slightly and showed high volatility.
The Bollinger bands are wide and aggressively moving up; this often signifies that the uptrend will continue; however, the price trades closer to the upper band suggesting that it is relatively high, which might push traders to exit their long positions.
The relative strength index recovered from an overbought status, but it's very close to going over 70% again, currently at 66%; this might be another indication of a price drop. The support level we established is at 5.682, which is a previous resistance level.
The short and long-term moving averages continue to move up, and the spread between the lines increases, suggesting that the upward trend will continue.
As we get mixed signals for this pair, it is best to wait for the price to consolidate and predict the next move.
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.
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.