Crude oil remains inside the $10-range 19.09-29.91 (upper Bollinger bands) for the sixth trading session, but doesn’t even approach its borders. Given the strong ADX, we can expect an outbreak of volatility at any moment and movement to one of the channel’s boundaries.
Locally we can see that if this outbreak takes place eventually, this won’t happen today. Extremely weak and virtually passive ADX suggests an extension of flat inside Bollinger bands (23.34-25.49 range).
We note local levels of support and resistance: 24.00 and 24.90. We can quite regard them as “zones” nearby the 23.34 and 25.49 marks, not as precise levels. Therefore it’s better to take trading decisions from remote levels, where price pins might be directed.
Main scenario: Flat in the 24.00-24.90 range.
Alternative scenario: Wider range of flat: 23.34-25.49.
Longs from 23.34.
Shorts from 25.49.