The energy commodity continues retracing after finding strong resistance at $125.14. The pair fell all the way to $115 earlier in the trading session but managed to recover some ground during the day. The price continues to be above the short and long-term moving averages, suggesting that the uptrend is likely to continue.
The Bollinger bands are slightly shrinking but they are still wide enough to expect high volatility in the short term. The upper band acted as a resistance and now that it is shrinking that resistance would be lower unless the upper band starts to expand.
The relative strength index is currently at 56% which will help the pair gather strength to come back and potentially reach a new high in almost 3 months. The price could move sideways around the 120s for a few sessions before making a breakout attempt. Our parabolic SAR indicator suggests that the price is likely to fall a bit more.
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