The energy commodity lost 4.8% in the previous two trading sessions, today it is slightly recovering and is up 0.5% in the session so far, the price found support on the 23.6% Fibonacci retracement at $106.66 which could end the recent losses; however, the downtrend might not be done just yet as the short and long-term moving averages crossed in yesterday’s session, strengthening the short signals.
The Bollinger bands are wide but they are starting to close a bit aggressively on the edges, this will likely bring lower volatility in the short term as they continue closing. The pair traded in between the bands, suggesting that the price is relatively fair, the bands often act as support and resistance levels.
The relative strength index is at 49% which will give Brent Oil the ability to move in either direction as it is at a very neutral level. The pair is trading inside the Ichimoku cloud, which suggests that there is market uncertainty, we could possibly see the commodity enter a consolidation period in the short term but that is hard to predict. Our parabolic SAR indicator suggests that the price will continue to lose ground in the short term.
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