Oil price falls on profit taking while the strengthening of USD made the commodities less attractive because oil became more expensive for those who don’t use USD as their currencies. However, there is still hope that OPEC members will agree to limit their production in their meeting next month.
Intraday bias for oil currently is bearish. For today, watch the support area at 50.31; if it breaks, oil price possibly will continue to fall to 49.86-49.37. However, note that hourly stochastic and CCI are oversold. Therefore, as alternative strategy you can wait for bearish signal confirmation on a pull-back move to within the resistance area at 50.76-51.26 to look for bearish signal confirmation with 50.31 as target and 49.86 in extension.
Be very careful if the price managed to break above 51.26 because it possibly will turn the intraday bias into bullish and oil price may rise to 51.48-51.75.
– Sell on break of 50.31; target at 49.86 or 49.37
– Sell on bearish signal confirmation within 50.76-51.26; target at 50.31 or 49.86