“Waiting zone” formed below the pivot-zone 25.53-31.15 continues to accumulate potential. ADX is in a strong zone, therefore a downward reversal may take place at any moment.
Probable target of new decline will be the middle Bollinger band (19.93).
Local dynamic shows that this accumulation can be quite treated as bullish! We are getting higher lows and resistance 26.07 at the upper Bollinger band so far doesn’t produce any serious reaction in the shape of pullback of reversal.
Thus if price overcomes the 26.07 barrier, oil might recover to 30.00-31.15.
Synchronous growth of the quotes, RSI oscillator and ADX indicator speaks for upward scenario. At the same time ADX so far is relatively distant from the area of trending activity, therefore during today’s session we can get one more downward pullback from 25.86-26.07 in direction 25.53 and 25.20.
Main scenario: Touch of 25.86-26.07 and then downward pullback in direction 25.53 and 25.20.
Alternative scenario: Break above 26.07 and further growth in direction 27.00-28.00 with aim at 30.00-31.00.
Shorts from 25.86-26.07 to 25.53 and 25.20.
Longs from 25.53 and 25.20 to 27.00-28.00.