Market showed some movement yesterday having tested the 42.48 region that proved to be a 4-month high. However we abstain from being too upbeat so far as ADX indicator showed zero reaction on yesterday’s event meaning that it can be the consequence of a flat.
Thus so far oil may remain within the upper Bollinger bands (40.19-42.48).
Locally bulls are keeping pressure so far, though it’s well seen that ADX indicator here has also steeply reversed to the downside. Thus growth of the quotes above resistance zone 42.10-42.48 (upper Bollinger band) is unlikely that allows considering short trades from this region.
Extremely low trending potential of ADX. At the same time market remains in an upward phase. The closest strong resistances are 41.74-41.81 and 42.30. Any sell signals formed at these levels will have bigger odds for execution.
So, we expect a moderate growth in direction 41.74-41.81 and 42.30, from where we can expect a decline to support 41.32. Ongoing situation is a flat, therefore moves might be mixed.
Shorts from 41.81 and 42.30 to 41.32.