Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
Although crude oil moved lower after the market’s open weakened by a stronger U.S. dollar, the commodity reversed and rebounded in the following hours as perturbation in Nigeria and a crisis in Venezuela raised worries over tightening supplies and supported the price of the commodity. Will we see further improvement in the coming week?
In today’s alert we are not providing charts once again as the differences in data in case of data providers still take place and decrease the level of clarity. Nevertheless, in the pre-market trading, crude oil futures gave up some gains and dropped to an intraday low of $48.39, reaching the 38.2% Fibonacci retracement based on yesterday’s rebound. This support triggered a reversal and increase in recent hour, which suggests a test of the Thursday’s high or even the 2016 high. Taking this fact into account, we think that the spot price of the commodity will also increase and test recent highs later in the day. We will provide you with a bigger update once we receive more reliable charts that will allay earlier doubts as to their credibility - most likely on Monday.
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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