Flat-accumulation of the oil market is in progress. The price again got closer to the middle Bollinger band (51.05) than to the upper one (55.24). Therefore traders will have to be patient in order to get optimum mid-term buy entry points.
Bulls showed preparedness to guard support 52.16 (lower Bollinger band), from where we can get recovery to the upper boundary of the sideways channel 53.63 (black arrow). Let’s note an activity of the ADX indicator (that sometimes happens during the flat). Thus in case support 52.16 gets broken, the price might fall to support 51.05 (red arrow).
On the hourly chart the lower Bollinger band was broken and it’s a signal of decline extension. We consider shorts from the middle band (52.80-52.89) reckoning on drop to 52.00 (and probable extension to 51.05).
Main scenario: Upward pullback to 52.80-52.89 followed by decline to 52.00.
Alternative scenario: Drop to 51.05.
Shorts from 52.80-52.89 to 52.00 and 51.05.