The energy commodity is trying to recover some ground after reaching its lowest level since late June 2021. The pair could enter a consolidation period in the short term.
The Bollinger bands are narrow after they closed aggressively at the end of December 2021, now the pair could start moving sideways until the bands open up and we have a breakout. Both bands are slightly moving upwards, if they continue to do this, it could indicate an uptrend, but its too soon to tell.
The relative strength index is at 44% the highest it has been since late November 2021, such level will allow the commodity to move upwards in the short to mid-term. Could this be the beginning of a rally? For this to happen, we would need to bands to open up and continue to move upwards.
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