US Oil looked very promising after it recovered more than 17% in less than 16 trading sessions. The energy commodity has been on a three-day losing streak; however, that seems to be ending soon as today it posts small profits of 0.32%.
The price was unable to consolidate the breakout of the 23.6% resistance at 72.31
The Bollinger bands got narrow, but they might open up in the short term; we can see the edged opening slightly, the price traded very close to the upper band, which suggested the price was relatively high, driving the price back down a notch, a total of 3.05% in three sessions. The pair found support at the 38.2% Fibonacci retracement and is now gaining some ground.
The relative strength index is currently at 55%, which will allow the pair to move in either direction; based on other technical indicators, it is likely that the retracement is only temporary.
Our parabolic SAR indicator suggests that the price will move in a downtrend; however, this lagging indicator requires a confirmation signal.
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