Trading position (short-term; our opinion): Short positions (with a stop-loss order at $54 and the initial downside target at $45.80) are justified from the risk/reward perspective.

Although the Energy Information Administration showed yesterday that crude oil inventories dropped-more-than-expected, another increase in gasoline supplies caused wavering between small gains and losses. What’s next?

Today’s alert will be very short, because although yesterday’s price action didn’t change anything in the very short-term (not to mention the short- or medium-term picture), the commodity moved lower earlier today, which means that what we wrote yesterday remains up-to-date also today. Therefore, if you haven’t had the chance to read our yesterday alert, we encourage you to do so today.

Thank you.

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

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