Trading position (short-term; our opinion): Short positions (with a stop-loss order at $48.56 and initial downside target at $35.24) are justified from the risk/reward perspective.
On Monday, crude oil extended gains after Goldman Sachs said the market moved into deficit in May due to falling production. In this environment, the commodity approached the level of $48. Will we see further rally?
In today's Oil Trading Alert we do not attach any charts delivered by our provider, because the data contained there are not confirmed by any other source (especially yesterday’s intraday high, closing price and the size of volume that accompanied Monday’s move). However, based on today's crude oil’s futures’ price action, we noticed that they moved little higher in a pre-market trading, but then gave up some gains and remains under $48 at the moment of writing these words. Therefore, short positions are still in play. We will provide you with a bigger update once we receive more reliable charts - most likely in the coming day(s).
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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