Oil keeps a tendency to day-to-day renewal of the highs. We can call the asset a bit overbought, however there are no other signs of probable stopping of the bulls.
H4-chart:
Locally we note triple divergence of RSI oscillator, which is a probable sign of buyers’ exhaustion. But key trending indicator ADX so far remains in an extreme zone, therefore it’s too early to discuss a reversal.
H1-chart:
Intraday we can’t rule out a downward correction to the middle Bollinger band (53.15-53.25) from where the market will try to settle above the round level 54.00.
Conclusions:
Main scenario: Extension of growth to 54.50 and 55.00.
Alternative scenario: Downward pullback to 53.15-53.25, then growth to 54.00 and 54.50.
Trading recommendations:
Longs to 54.50 and 55.00. Preferable entry zone is 53.15-53.25.
