Trading position (short-term; our opinion): Short positions with a stop-loss order at $54.12 and initial (!) target price at $35.72 are justified from the risk/reward perspective.
Today’s Oil Trading Alert will be extremely short, as basically nothing changed on the market since we commented on it yesterday and today’s entire alert could simply be a repeat of yesterday’s issue. Crude oil increased to $45.70, but then reversed and closed the day under the 50-day moving average once again. This means that the commodity remains below the upper border of the declining trend channel and is still trading in a triangle under the 38.2% Fibonacci retracement and the black resistance line (it defines potential right shoulder of the head and shoulders formation). Earlier today, we haven’t seen any important breakout/breakdown, which could change the overall situation. Therefore, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:
Oil Trading Alert: Another Bearish Day
As always, we’ll keep you - our subscribers - informed should anything change.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
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