Trading position (short-term; our opinion): Short position with the binding profit-take level of $43.12 and the stop-loss level of $56.11.
Today's Oil Trading Alert is once again going to be very brief as crude oil once again broke to new lows, thus confirming our previous analysis and making our short position quite profitable. We opened it when crude oil was trading at about $51.50, so this position is already about $5.50 "in the green". Our previous comments remain up-to-date and it seems that crude oil is going to decline even more before the short-term trend reverses, thus making our positions even more profitable.
Crude oil is well below the previous lows and the 61.8% Fibonacci retracement based on the 2018 - 2019 rally and the previous lows. This means that there is no strong support level nearby that would be likely to stop the decline. The 2018 lows, therefore, appear to be the next likely target.
Summing up, the outlook for crude oil remains bearish and it seems that our short position will become even more profitable in the following days.
As always, we'll keep you - our subscribers - updated.
Trading position (short-term; our opinion): Short position with the binding profit-take level of $43.12 and the stop-loss level of $56.11.
Thank you.
Nadia Simmons
Day Trading and Oil Trading Strategist
Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager
