What 1-hour chart says?

Fundamental Development Oil prices fell by more than $1 on Tuesday as concerns over a possible recession and China's COVID-19 curbs outweighed an expectation of tight global supply and a pick-up in fuel demand with the U.S. summer driving season. Brent crude futures for July fell $1.34, or 1.2%, to $112.08 a barrel. U.S. West Texas Intermediate (WTI) crude futures for July delivery dropped $1.28, or 1.2%, to $109.01 a barrel. Brent gained 0.7% on Monday while WTI settled nearly flat. Multiple threats to the global economy topped the worries of the worlds well heeled at the annual Davos economic summit, with some flagging the risk of a worldwide recession. China, the world’s largest oil importer, promises stimulus such as rolling out new investment projects. The country will offer more than 140 billion yuan ($21 billion) in additional tax relief to offset the heavy impact of lock downs on businesses.

Short Term Technical View: In 1-hour chart, XTIUSD is trading lower line of Bollinger band indicator. CCI indicator also showing weakness at lower line level, and XTIUSD is trading below pivot level 108.50. As per the 1-hour chart, XTI will be test next support level 106.50. As per my view, sell on dip is good strategy for XTIUSD, sell range is 109.50 to 109, and there is very strong resistance zone at 111.


Alternative Scenario: If XTIUSD will trade above 111 and sustain in U.S. Session so it will be, give great opportunity to buy with the target of 113 with the stop loss of 109.50.