Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $30.23 as the stop-loss level.

We didn't have to wait long for Friday's downside reversal continuation in oil. And neither today have the bulls had any degree of success in stopping the slide.

Let's start today's analysis with the daily chart examination (chart courtesy of www.stooq.com ).

The daily chart reveals that crude oil futures extended losses earlier today, making our short positions even more profitable. Our yesterday's observations remain up-to-date also today:

(...) Should it be the case and the futures decline from here, the first downside target for the bears would be the downmost green gap created at the beginning of the month, the psychological barrier of $20 and the recent lows.

Summing up, it indeed seems that we'll see lower crude oil values in the following days.

Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $30.23 as the stop-loss level.

Thank you.

Nadia Simmons
Day Trading and Oil Trading Strategist

Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager