Trading position (short-term; our opinion): Short positions (with the stop-loss order at $68.15 and the initial downside target at $56.57) are justified from the risk/reward perspective.
Crude oil inventories grew more than twice as analysts expected, daily U.S. production hit a new weekly record and OPEC raised its forecast for non-member oil producers. Despite these bearish news, the EIA report showed a sharp decline in products inventories, which overshadowed negative numbers and pushed black gold higher. Whether the bears slept yesterday's data or it’s just the calm before the storm?
Today’s Oil Trading Alert will be extremely short, as basically nothing changed on the market since we commented on it yesterday and today’s entire alert could simply be a repeat of yesterday’s issue. Crude oil slipped to the previously-broken upper border of the long-term green trend channel (you could see it on the weekly chart yesterday) and the barrier of $60, but then rebounded slightly, closing the day at $60.96.
This means that the commodity remains below the black declining resistance line based on the previous highs (a potential upper border of declining trend channel) and the previously-broken 50-day moving average.
Earlier today, we haven’t seen any important breakout/breakdown, which could change the overall situation. Therefore, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:
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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