Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

Earlier today, crude oil moved higher, which resulted in a comeback to yesterday’s high. Will we see further improvement?

Crude Oil’s Technical Picture

Let’s take a closer look at the charts and find out (charts courtesy of http://stockcharts.com).

Today’s alert will be quite short as basically not much changed in the short-term perspective as the black gold moved higher and approached yesterday’s high after today’s market’s open. Nevertheless, in this area we can notice the July 6 high and the 50% Fibonacci retracement, which together successfully stopped oil bulls on Wednesday. Taking this fact into account, we think that as long as there is no confirmed breakout above these levels another attempt to move lower is likely.

Therefore, if the above-mentioned area triggers another pullback or the size of the volume does not confirm oil bulls’ strength, we’ll consider opening short positions. 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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