Baxia Markets
January 13, 2022

US Oil gains 5.5% but could have a pullback soon

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The energy commodity is on an uptrend since December 21st, 2021, the pair finally broke the resistance level on the 23.6% Fibonacci retracement at $79.83. The price could face a price correction in the short term as its entering an overbought status.


The Bollinger bands are wide and the upper band continues opening up, which is a good sign that the uptrend will continue, however, the pair currently trades above the upper band, suggesting that the price is relatively high. XTI could find support at the 79.83 levels, or it could continue to move upwards to the 85 levels before making the correction, the longer the price takes to start pulling back, the strongest the retracement will be.


US Oil Jan 11th 2022


The relative strength index is entering an overbought status, currently, at 69.5%, we believe that it should not take much longer for the pair to start the price correction in order to continue moving upwards in the mid-term.


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energy, commodities, trading conditions, technical analysis, trading indicator

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