In the last 12 trading sessions, the energy commodity price has increased more than 34%.
The Bollinger bands are open, and volatility has been high; it could continue like this for a few more sessions. The price currently trades very close to the upper band, suggesting that it is relatively high; traders could start reacting in the short term and drive the price downwards.
The relative strength index is oversold at 79%, a level we had not seen since June, naturally, this could start driving the price down in the short term, but it wouldn't surprise us if it stays oversold for a few more sessions.
The short and long-term moving averages gap expanded, indicating that the general trend continues to be upwards. The price broke its highest level in more than seven years; however, we could see it drop at any moment now.
Our parabolic SAR indicator suggests that the price will continue to increase; this is an unusual scenario for the energy commodity.
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.