US crude oil has been on an uptrend for the last three trading sessions, where it managed to recover more than $6.3, which equates to about a 10% increase in the price of the commodity.
After struggling for more than 20 trading sessions, Crude Oil managed to break two crucial resistance levels at 61.8% and 50%; the second resistance importance relies on the strength that this it holds, this retracement often indicates a trend reversal in the direction of the breakout, which will give investors confidence to expect an uptrend.
The Bollinger bands are wide, but they are closing up at the edge, indicating a breakout consolidation; from a technical analysis point of view, we would expect the price to continue climbing in the short term. The price trades in between the bands, which will let the price move upwards.
The relative strength index is at 48%, yet another Buy signal; the low RSI will also allow the price to continue climbing until it gets closer to an overbought status at 70%. Our parabolic SAR indicator strengthens our long signals from other technical indicators.
The moving averages are still moving downwards, but this indicator compounds the last 20 and 40 bars, in which naturally the bigger downward movements have more weight on the average, which will delay a crossing. The gap between these lines will get narrower as the price continues climbing.
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