Daily chart:
As we see, our concerns about the overbought market were not in vain. Despite the trending activity of the ADX indicator, the bulls were unable to overcome the level of $54 a barrel having got bearish close of yesterday's session on top of that. Mid-term potential of correction is quite big - up to the middle Bollinger band (49.42-50.00). However the market didn’t deliver a direct short-signal for such a tangible decline yet.
H4-chart:
Locally the market still keeps uptrend consolidating around the middle Bollinger band 52.73-53.02 before probable new upward wave. But here we also observe a steep drop of the ADX trending potential.
H1-chart:
We have flat intraday dynamics. It looks like the asset will spend the whole session inside the lower Bollinger bands (52.53-53.10).
Conclusions:
Main scenario: Flat in the 52.53-53.10 range.
Alternative scenario: Short-term upward momentum to 54.00 followed by a new decline of the price.
Trading recommendations:
Short-term trades in the 52.53-53.10 channel.
