Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

On Wednesday, light crude lost 1.60% as combination of unexpected increase in crude oil inventories and a stronger greenback affected negatively the price of the commodity. As a result, black gold came back to the previously-broken Nov highs, but is it enough to trigger further deterioration?

Today’s alert will be quite short, because crude oil didn’t do anything that would change the outlook. In our opinion, it still remains unclear and the commodity may go both north and south in the coming days. Although, crude oil futures extended losses earlier today, we haven’t seen any important 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: Strength and its Implications

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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