Trading position (short-term; our opinion): Small (half of the regular size) short positions (with a stop-loss order at $61.13 and the initial downside target at $52) are justified from the risk/reward perspective.

On Monday, a news about the shutdown of a North Sea pipeline for repairs encouraged oil bulls to act, which resulted in a one more upswing. What impact did it have on the technical picture of the commodity?

Today’s alert is going to be very brief, because crude oil didn’t do anything that would change the outlook on Monday and the same applies to today’s session so far. The only thing that crude oil did is that it moved higher and approached the upper border of the rising trend channel, but there was no breakout above it, which means that nothing really changed.

Consequently, the comments that we made on Monday remain up-to-date also today and if you haven’t had the chance to read our yesterday’s 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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