The Energy commodity has been able to recover 4.21% in the last four trading sessions. The price managed to break an important resistance level at our 38.2% Fibonacci retracement of 69.44 just a few sessions ago,
The price currently trades inside the Ichimoku cloud, which could be interpreted as market uncertainty; however, we believe there is potential for an uptrend continuity in the mid-term.
The relative strength index is at 58%, which from a technical point of view will enable the commodity to continue climbing for a few more sessions before reaching an overbought status. In that case, we would expect a temporary pullback.
The Bollinger bands are wide and moving up, suggesting that the uptrend will continue for a few more sessions. The price is getting closer to the upper band but is close enough to consider a retracement.
The short and long-term moving averages continue moving up; however, the gap between the lines decreases after a few pullbacks are weighted in the average calculation; since the pair is still trading above the 50% retracement and the lines are moving up, we still forecast an uptrend.
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