Trading position (short-term; our opinion): Full (150% of the regular size of the position) short position with the stop-loss order at $74.10 and the next downside target at $68.51 is justified from the risk/reward perspective.
On Thursday, crude oil lost 1.49% and broke below two next supports, which doesn’t bode well for oil bulls. How low can the price of black go in the coming week?
Let’s take a look at the chart below (charts courtesy of http://stockcharts.com).
Today’s alert is going to be very brief, because crude oil extended losses below the previously-broken lower border of the green rising wedge, making our short positions more profitable.
Thanks to yesterday’s decline, the price of black gold slipped (and closed Thursday’s session) under the 50-day moving average and the 61.8% Fibonacci retracement, increasing the probability that we’ll see a realization of yesterday’s pro-bearish scenario in the very near future – especially when we factor in the lack of buy signals and the broader picture of the commodity about which we wrote in previous alerts.
Earlier today, we haven’t seen any important move, which could change the overall situation. Therefore, if you haven’t had the chance to read our yesterday’s alert, we encourage you to do so today - it’s up-to-date:
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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