What 1-hour chart says? Fundamental Development: Oil prices slid Monday as flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market. Brent crude futures fell $1.81, or 1.48%, to $120.20 a barrel while U.S. West Texas Intermediate crude was at $118.81 a barrel, down $1.86, or 1.54%. Both contracts dropped over $2 earlier in the session. Prices fell after Chinese officials warned on Sunday of a "ferocious" COVID-19 spread in the capital and announced plans to conduct mass testing in Beijing until Wednesday. Concerns about further interest rate hikes following red-hot U.S. inflation data released on Friday are also weighing on global financial markets.
Short Term Technical View: In 1-hour chart, XTIUSD is trading lower line of Bollinger band indicator. As per RSI Indicator also showing weakness in the chart the 1-hour chart, XTIUSD is trading below today pivot level 118. As per my view, sell on rise is good strategy for XTIUSD, sell range is 118 to 118.25, and there is very strong resistance zone at 119.75.
Alternative Scenario: If XTIUSD will trade above 120 and sustain above in U.S. Session so it will be, give great opportunity to buy with the target of 122 with the stop loss of 118.75.
