The symptoms you described, localized, itchy, and oozing scales, are common signs of seborrheic dermatitis or scalp eczema. The oozing typically happens when the inflamed skin is irritated or picked. To treat this, try a medicated shampoo containing ketoconazole, selenium sulfide, or coal tar to target the buildup and itching. For the localized oozing and inflammation, a mild topical corticosteroid solution, like hydrocortisone, can help soothe and heal the skin. Please avoid picking or scratching the area to prevent infection. If there is no improvement after two weeks, please consult a dermatologist for a proper evaluation.