Upper bollinger band was curved moving down by almost $0,5 comparing to yesterday’s session. Thus current upward wave probably will be capped by the 36.56 mark, where oil will get a downward reversal again.
ADX keeps pressure so far, therefore bulls probable will be able to reach 36.56 before reversal. At the same time RSI oscillator shows signs of overbought conditions and bearish divergence signifying shift of power balance in favor of sellers.
On hourly chart we can also notice problems of bulls with further movement to the upside. We note a dynamic support at 33.46, where we can get one more, final upward momentum.
Main scenario: Downward pullback to 33.46 and then growth to 36.56 with following downward reversal.
Alternative scenario: Smooth growth to 36.56 without prior correction and then downward reversal.
We need to be careful with long trades, but an opportunity to go long might emerge at support 33.46.
Shorts from 36.56 with count on mid-term downward reversal.