Trading position (short-term; our opinion): Long positions (stop loss at $37.23; initial upside target at $49.60) are justified from the risk/reward perspective.

Today’s alert is going to be very brief, because the description of yesterday’s situation is also the appropriate one for what we’re seeing today. In short, crude oil moved higher once again and even though a pause could still be seen, the rally is not likely to really end (or a bigger consolidation is not likely to be seen) until crude oil moves close to the $50 level.

The comments that we made on Friday also remain up-to-date and if you haven’t had the chance to read them, we encourage you to do so today.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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