The energy commodity lost 13.2% in a single session on March 9th after reaching almost a 14 year high of $138.03. The price broke two support levels; $120.98 and $110.43 on the Fibonacci retracements 23.6% and 38.2% respectively.
The Bollinger bands are extremely wide as the price rallied to levels not since in more than a decade, the price is likely to find support at 101.91 if it continues falling, for now, it is battling to stay above the 110.43 mark, the pair trades in between the bands meaning that it is at a relatively fair price. It continues trading above the short and long-term moving averages which is an indicator of an uptrend continuity, we would have to wait and see if the market decides otherwise.
The relative strength index is at 56% which dropped almost 30% from two sessions ago, this would allow the pair to continue climbing in the short term based on technical analysis. Our parabolic SAR indicator suggests that the price will continue falling in the short term, with the mixed signals we are getting, is best to wait for a more defined trend to place a position.
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