Potential of ADX indicator is decreasing, therefore overall negative forecast on oil probably will unfold in a slow pace. Sellers’ targets at this stage reside at the area of lower Bollinger band (35.23).
We note a potential level of sell-offs - 38.63 (middle Bollinger band). Local ADX is in a strong zone, therefore support 37.01 might get under pressure of sellers.
On hourly chart bulls’ weakening at the area of middle Bollinger band (38.13) is well seen, therefore buying oil today is out of the question.
We consider only shorts in direction 37.01-37.43. Optimal entry point is the upper Bollinger band (38.63-38.92).
So, we expect decline to 37.01-37.43 with risks of dropping to 36.00 and 35.23. Potential of upward correction is limited by resistance zone 38.63-38.92.
Shorts from 38.63-38.92 to 37.43, 37.01, 36.00, 35.32.