Despite the attempts of texas oil to climb higher, we don’t see a proper reaction from ADX indicator. This points to a low trending potential of the market. Thus shorts from the upper boundary of 40.38-42.48 range have better prospects.
Local ADX also resides in a relatively weak zone, therefore approach of the price to resistance 42.48 is not provided with appropriate energy for the break
Resistance zone 42.30-42.48 is about to be tested shortly. Thus it’s a key area: weakness of bulls at this zone will confirm negative forecast for oil. And in case of a break and settling above this zone we could start considering probable further bullish scenario in direction of the mid-term target 50.00.
So, we expect a touch of 42.30-42.48 and then downward reversal in direction 41.10-41.17.
Shorts from 42.30-42.48 to 41.10-41.17.