The energy commodity reached a new high in 7 years of 83.85, the price of West Texas Intermediate crude could soon have a strong retracement, the support level we identify is at 78.65. We don't think the price will drop that much in the short term, but it's almost imminent that we will see a pullback in the short term.
The Bollinger bands are wide and moving up, indicating that the uptrend could continue; the price trades closer to the upper band, suggesting that it is relatively high; this could also bring the commodity price down a few notches.
The relative strength index is currently overbought at 75%; this is the eight sessions with an RSI over 70%, another reason to believe that we could have a pullback soon. The short and long-term moving averages continue moving up, and the spread is increasing, indicating that the general trend continues to be upwards; however, this does not prevent a temporary pullback.
Our parabolic SAR indicator now suggests that the price will start dropping; we don't rely much on these signals as it is a lagging indicator.
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