Forming of strong upward wave of oil is in progress. We can get a testing of the upper Bollinger band (35.73) shortly. And break of this level, as we remember, will send the market by at least $8 higher to the 43.22 region.
Locally we observe tangible overbought conditions that may interfere with market recovery above 35.73. Nevertheless upward potential is in place so far.
Intraday potential of ADX is falling, therefore the most likely today’s scenario will flat-accumulation within the upper Bollinger bands (32.44-33.31).
Main scenario: Flat in the 32.44-33.31 range.
Alternative scenario: Break to 35.73.
Longs from 32.44 to 33.31 and 35.73.
Short-term shorts from 33.31 to 32.44 are available.