The energy commodity fell to 4.731, its lowest level since September 8th, the price is making a bit of progress but we are seeing a lot of sideways movement lately, indicating that the price might consolidate around this level.
The Bollinger bands are wide and volatility should be high in the short term, the bands started to move downward last week, and the price has not been able to complete a breakout on the resistance. The price trades closer to the lower band, suggesting that the price is relatively low, this could incentivize traders to open long positions on the commodity, boosting the price, we will have to wait and see how the markets behave before placing a trade.
The relative strength index is at 42%, it has stayed close to this level for the last 11 trading sessions, the price is likely consolidating at the 4.9 level, very close to the resistance on the 38.2% retracement.
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.