West Texas Intermediate continues reaching levels not seen since October 2018.
The relative strength index is at 69%, and we could see a pullback in the following hours if the price continues rising. This pullback will bring down the RSI back from an oversold status and would allow the pair to gather strength to continue its rally in the medium term.
The Bollinger bands are wide and continue to open up. The price still trades below the upper band, allowing the pair to reach the $71 price line before a retracement happens.
Our parabolic SAR indicator suggests that the uptrend will continue, but a pullback is almost imminent based on other technical indicators. US oil has reached a level that some consider not sustainable in the short term. It has climbed very fast in the last three months, gaining more than 23%.
If the pair starts falling in the following hours, it could find a strong support level at the 23.6% Fibonacci Retracement and then continue its overall uptrend.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
