West Texas Intermediate has been on an uptrend since mid-May. It finally reached a new high in almost two years, mainly influenced by fundamental factors. OPEC alliance forecasted a tightening global market ahead of the production policy meeting. West Texas Intermediate rose as much as 2.6% from Friday’s close to $68.04 a barrel.
From a technical point of view, there is still some more room for the price to continue rallying. The Bollinger bands are opening up aggressively; this will increase volatility in the markets and allow the price to continue its uptrend until the relative strength index gets above 70%. In which case it will be considered overbought, current RSI is at 63.18%, allowing the pair to continue climbing at least for the short term. Price could reach the high 68 and low 69 levels in the upcoming sessions.
The price currently trades above the short and long-term moving averages; this indicates that the uptrend is likely to continue; our Parabolic SAR indicator strengthens this signal.
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