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.
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