Trading position (short-term; our opinion): Short positions (with a stop-loss order at $52.52 and the initial downside target at $45.80) are justified from the risk/reward perspective.

Although crude oil moved lower after the market open, the barrier of $50 stopped decline, triggering a rebound yesterday. Despite this move light crude lost 0.28% and closed another day under the lower border of the trend channel. What’s next?

Today’s alert is going to be very brief, because crude oil didn’t do anything that would change the outlook on Thursday and the same applies to today’s session so far. The only thing that crude oil did yesterday is that it slipped after the market open and tested the barrier of $50, but then reversed and erased some losses. Despite this reversal oil bulls didn’t manage to break above the lower border of the purple rising trend channel, which means that nothing really changed and the outlook remains bearish.

Taking the above into account, we believe that the comments, which we made on Thursday, remain up-to-date also today and if you haven’t had the chance to read our yesterday 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.

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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