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

On Thursday, crude oil tested the strength of the nearest support zone and then the nearest resistance area. Who will take control in the coming week?

Today’s alert will be very brief, because the overall situation in the very short term hasn’t changed much. Yesterday, the commodity tested the strength of the support zone created by the mid-November low and the lower border of the blue declining trend channel, which encouraged oil bulls to act. As a result, light crude rebounded and climbed to the previously-broken zone, which serves as the nearest resistance.

Nevertheless, the Stochastic Oscillator generated the buy signal, while the CCI and the RSI are very close to doing the same, which means that the comments, which we made yesterday, remain up-to-date. Therefore, if you haven’t had the chance to read our Thursday’s alert, we encourage you to do so today. We will provide you with a bigger update on Monday, once we get the weekly closing prices.

Thank you.

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

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts