Trading position (short-term; our opinion): Short positions (with the stop-loss order at $68.15 and the initial downside target at $56.57) are justified from the risk/reward perspective.

Quick exchange of blows after today’s market opening ended with the victory of the bears and a drop below $61. Will we see another attack on oil bulls’ fortress around the barrier of $60?

Today’s alert will be very brief, because the short-term outlook for crude oil remains bearish. Although light crude moved higher after today’s market open, oil bears didn’t lose cold blood and quickly showed their claws to the opponents. Thanks to their attack, the price of crude oil turned back to the south and extended yesterday’s losses.

At the moment of writing these words, the commodity remains under $61, which means that the way to the recent lows and the barrier of $60 is open. Additionally, all negative factors from our previous commentary are still in play, supporting the sellers and lower prices of black gold.

Therefore, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:

Time for Fat Oil Bulls? Not Exactly....

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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