A pull-back move has occurred as traders took buy on dip actions.

The oil price fell to the lowest level since August and that was the biggest fall since January, triggered by tension between Saudi Arabia and Iran related to production limitation policy.

Technical Analysis:

Intraday bias for oil remains bearish. 20 MA and 50 MA are still falling on hourly chart. A pull-back move has occurred to within the intraday resistance area at 44.44-44.98. Note that hourly stochastics and CCI are overbought.

Today, I plan to look for sell signal confirmation within the resistance area with 44.10 as target and 43.55 in extension.

Be very careful if the price managed to break above 44.98 because it possibly will turn the intraday bias into bullish and oil price may rise to 45.32-45.87.

Trading Plan: Sell on bearish signal confirmation within 44.44-44.98; target at 44.10 or 43.55

Oil Chart:

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