The energy commodity was not able to break the $76.95 barrier that was reached in early July. The maximum level it managed this week was 76.65, which came pretty close to the previous highest level since 2014.
The price has been on an uptrend for more than a month now, the price is expected to break this resistance, but the asset lost strength as it came close to entering an overbought status. The relative strength index reached 69%.; from there, the commodity started losing momentum.
The Bollinger bands are wide, but the price was trading above the upper band, suggesting that it was relatively high; in addition to the RSI being high, the price dropped a few points. As the bands continue to expand, we believe that the price will try to complete the breakout in the short term again.
Our parabolic SAR indicator suggests that the price will continue to move upwards in the short term. The previous retracement could be temporary as many traders close positions amid reaching a new high in almost seven years.
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