Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
On Thursday, crude oil reversed once again and declined under the previously-broken short-term line, invalidating earlier breakdown. Will this negative signal encourage oil bears to push the commodity lower in the coming days?
Today’s alert is going to be quite short, because crude oil didn’t do anything that would change the outlook yesterday and the same applies to today’s session so far. The only thing that crude oil did yesterday is that the commodity moved lower and invalidated earlier breakout above the short-term blue support/resistance line – similarly to that we saw in the previous week. Therefore, all comments that we made on Thursday remain up-to-date also today and if you haven’t had the chance to read our yesterday’s alert, we encourage you to do so today:
Oil Trading Alert: Crude Oil vs. Barrier of $50
We will provide you with a bigger update once we see more interesting developments on the crude oil market - most likely on Tuesday.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager
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