Trading position (short-term; our opinion): Short positions with a stop-loss order at $77.44 and the initial downside target at $67.95 are justified from the risk/reward perspective.

Up and down and turn around - in these several words we can summarize the first session of this week.Looking at yesterday's price action, we think that both sides of the market are testing their capabilities before the next bigger move. Will oil bulls stop the sellers in the coming days or vice-versa? We know who has more technical arguments on its side. Do you know that too?

Let’s examine the recent changes on the chart below (charts courtesy of http://stockcharts.com).

Technical Picture of Crude Oil

Today's alert will be even shorter than Monday’s analysis, because as you can see on the daily chart nothing has changed in the short term. During yesterday’s session crude oilwavered between small gains and losses around the upper line of the red rising trend channel (based on intraday lows and highs), but finally closed the day on it.

As a result, we can see another doji candlestick on the daily chart, which increases uncertainty among investors about the direction of the next move. Despite this fact, all pro-declining factors about which we wrote in our previous alerts remain in the cards, supporting oil bears and lower prices of black gold in the coming days.

Therefore, not wanting to waste your precious time, we will not re-write them now, only post links to Friday’s and yesterday's alerts, in which you will find all the necessary details. If you haven’t had the chance to read both Oil Trading Alerts, we encourage you to do so today:

Crude Oil and Its Another Interesting Relationship

Crude Oil – Similarities to the Past

Summing up, short positions continue to be justified from the risk/reward perspective as crude oil verified the earlier breakdown under the upper line of the rising trend channel (based on an intraday highs and lows) once again, increasing the probability of another downswing. Additionally, all daily indicators support oil bears at the moment of writing this alert, which suggests that lower prices of black gold are just around the corner.

Trading position (short-term; our opinion): Short positions with a stop-loss order at $77.44 and the initial downside target at $67.95 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.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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