Substantial weakness of buyers during approach to resistance at 36.00-37.00 resulted in quite sharp reversal with tangible bearish momentum.
Thus if reversal proves confirmed, new downward wave will set the target at the middle Bollinger band (25.33).
Local reversal bearish pattern Over&Under was formed. Key support now is 31.07 level (lower Bollinger band). If it proves broken, oil can drop by several dollars in direction of support 26.33-26.00 on the back of tangible ADX pressure.
Support zone 31.07-31.20 will undergo the pressure of sellers (we note trending state of ADX indicator in favor of bears), therefore in case of break of this zone, market most likely will boost decline (black scenario). If support 31.07-31.20 manages to hold oil, we can face a corrective scenario in direction 33.40-33.67, where midterm sell-offs will be resumed (red trajectory).
Main scenario: Decline under 31.07 and further drop in direction of round levels 30.00, 29.00 with aim at 25.33-26.00 (in medium term).
Alternative scenario: Upward bounce off 31.07-31.20 in direction 33.40-33.67.
Below 31.07 - shorts to 30.00 and 29.00.
Above 31.07 - longs to 33.40-33.67 (alternative scenario).