The energy commodity recovered the ground it lost on previous trading sessions, which came from an expected pullback that found support at $81.94, the price reached a 7 year and 4 months high at $88.84, the pair is likely to see a new retracement in the short term as the price enters an overbought status.
The Bollinger bands are wide and they continue to move upwards, suggesting that volatility would be high and that the price will continue the uptrend in the mid-term, the pair is getting closer to the upper band, but as it continues to expand the price is not yet considered relatively high.
The relative strength index is at 71% which is considered overbought, this might bring the price of US Oil a notch or two in the short term as a price correction but the general trend continues to be upwards, we could see the price of Oil in the low 90’s soon.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
