Trading position (short-term; our opinion): Short positions with a stop-loss order at $70.96 and the initial downside target at $62.85 are justified from the risk/reward perspective.
Yesterday, black gold moved a bit higher, but did this “increase” change anything in the short-term picture of the commodity?
Today's alert is going to be even shorter than yesterday's issue, as once again nothing really changed in the very short-term picture of crude oil. Another day passed, and light crude closed it under the previously-broken upper border of the green rising trend channel, which we marked on the daily chart in our previous Oil Trading Alerts.
Despite yesterday’s rebound, the move materialized on smaller volume than Tuesday’s decline, which in combination with the sell signals generated by the CCI and the Stochastic Oscillator suggests that the next move will be to the downside (especially when we factor in all bearish signals about which we wrote on Tuesday).
Consequently, the comments that we made on Tuesday are still valid. Therefore, if you haven’t had the chance to read our Tuesday's alert, we encourage you to do so today – it's up-to-date also today:
Crude Oil – Higher? Monthly Perspective
Trading position (short-term; our opinion): Short positions (with a stop-loss order at $70.96 and the initial downside target at $62.85) are justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.
On an administrative note, due to your Editor’s travel plans for the rest of the week, the next few alerts will be shorter than the ones that we’ve been publishing recently. Of course, we will keep an eye on the market and we’ll keep posting the alerts on a daily basis, plus intraday alerts whenever the situation requires it.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager
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