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

Today’s alert will be short, as technically nothing changed on the market since we commented on it on Thursday. Although crude oil increased above $51 earlier today, the commodity is still trading under the upper border of the key resistance zone – the Jun high of 51.67. This means that as long as there won’t be a confirmed breakout above it, a reversal and lower values of crude oil are very likely – especially when we factor in the current position of daily indicators (they are not only overbought, but there are also negative divergences between the RSI CCI, Stochastic Oscillator and the price of the commodity) and the fact that the size of volume increased during Friday’s decline compared to what we saw when light crude extended gains on Wednesday and Thursday. We will provide you with a bigger update once we see today’s closing prices.

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, Gold & Silver Fund Manager

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