The energy commodity found a strong pullback in recent days and lost 8.55% at some point in the previous session, now it is showing some recovery signs and could come back stronger. The price came close to the Ichimoku cloud but missed it by a few points.
The Bollinger bands are opening up indicating high volatility for the short term, the price traded below the lower band, indicating that it was relatively low, which helped boost the price of the commodity by a few points. The pair now faces resistance at the $79.82 level in our 23.6% Fibonacci retracement, which is very likely going to be broken in the short term.
The relative strength index is at 45%, another indicator that the price could start a rally in the short term, giving it more than enough room to start climbing aggressively. Once the RSI gets above 70% we would expect another retracement but not as big as the one we are seeing.
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