Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $30.23 as the stop-loss level.

Today's crude oil market analysis is going to be relatively short as our previous analyses remain up-to-date. Black gold declined significantly yesterday and even though it bounced, it's still relatively down. The breakout above the late-March highs was invalidated quickly and the second attempt to move higher was unsuccessful to say the least. Crude oil didn't even manage to move to the late-March high, let alone break above it.

The dead-cat bounce might already be over, and crude oil appears ready to continue its previous slide. This time, it might not stop above $19...

Summing up, it seems that crude oil's rally is already over, and lower crude oil values are to be expected.

Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $30.23as the stop-loss level.

Thank you.

Nadia Simmons
Day Trading and Oil Trading Strategist

Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager