The energy commodity reached a new high since November of 2021, the price trades above our short and long-term moving average, suggesting that the price will continue to move upwards; however, it might be too high and we could see a pullback soon.
The Bollinger bands are wide and continue to open up, particularly the upper band, which often indicates that the uptrend would continue; however, the pair trades above this band, suggesting that the price is relatively high. Investors might see this as an opportunity to place a short trade.
The relative strength index is overbought at 72% which could push traders to close their long positions with a profit, which would potentially cause the price to retrace, the pair has support at $5.150 on our 23.6% Fibonacci retracement. Our parabolic SAR indicator suggests that the price will continue to move up, however, this is a lagging indicator.
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