The energy commodity managed to break the resistance at the 23.6% Fibonacci retracement on $79.83 after falling to the low 78’s earlier last week. We would expect the uptrend to continue for the short term and see a potential breakout on the previous high for the last seven years.
The Bollinger bands are narrow, indicating that volatility could be lower. The price trades between the bands, suggesting that the current price is fair, which could incentivize traders to place long positions on the commodity and bring the Price up.
The relative strength index is at 57%, which will give the pair enough room to continue climbing until it gets closer to the overbought status. Price could start consolidating at the low to mid 80’s in the mid-term.
Our parabolic SAR indicator suggests that the Price will continue to drop; however, this is a lagging indicator and has not yet considered the current two-day winning streak.
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