The energy commodity has not seen much action in the last four trading sessions as the price consolidates in the low 91 levels. The general uptrend is expected to continue in the short and medium term.
The Bollinger bands are shrinking and we expect lower volatility in the short term, the pair trades closer to the upper band, but not close enough to believe that the price is high, it is likely that UK Oil would continue moving laterally as the consolidation period is on its early stages.
The relative strength index is at 65% recovering from an overbought status that was reached when the asset found a new high in more than 7 years, the moving averages spread continues expanding, suggesting that the uptrend will continue in the short to mid-term.
Our parabolic SAR indicator suggests that the price will continue to climb, we believe that the pair will continue an uptrend, but it will likely find a pullback in the short term, which will allow the pair to gain strength and continue rallying.
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