Trading position (short-term; our opinion): Short positions (with a stop-loss order at $54.21 and initial downside target at $43.37) are justified from the risk/reward perspective.
On Thursday, crude oil lost 2.19% as worries over the supply glut in crude and refined product weighed on investors’ sentiment. In this environment, light crude moved away from the resistance zone and re-approached the recent lows. What’s next?
Today’s alert is going to be very brief, because crude oil didn’t do anything new. It moved after the market’s open to the green resistance zone created by the Apr and early May highs once again, but then reversed and declined, re-approaching the lower border of the blue consolidation. This is a repeat of what we already saw earlier this month, therefore, the comments that we made yesterday 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. We will provide you with a bigger update on Monday, once we get the weekly closing prices.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
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