The energy commodity lost more than 4% in the previous sessions and retraced more than a full level from 38.2% to 23.6%. The pair is finding support at 102.14 and the bleeding is stopping for now. The current price level is below the short and long-term moving average, suggesting that the price could fall some more, we would have to wait and see if support is strong enough to hold the pair.
The price entered the Ichimoku Cloud which often indicates market uncertainty. If the price falls more, then we would expect the price to continue moving downwards as it will be exciting the cloud and the trend could be clearer.
The Bollinger bands are wide and steady, with not much movement in the last ten trading days, the pair trades between the bands, suggesting that the price is relatively fair. We would expect high volatility to continue over the short term, the price can move in either direction at this point, we need to wait and see if there is another support breakout attempt, or if the price can resume the uptrend.
The relative strength index is at 49% which will allow the price to move in either direction, more likely to start moving upwards as it continues to be the direction of the overall trend. There is still a good amount of room on the RSI before it gets close to the overbought status, which is why the price could continue the uptrend in the short term.
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