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

Dear Readers,

Before starting today's analysis, I would like to thank you for the patience you have shown in the last weeks during my absence.

This time allowed me to recharge my batteries and I believe that thanks to it I will be able to serve you even better in the coming months.

Enjoy your Alert!

Let's take a closer look at the chart below (chart courtesy of www.stooq.com ).

Looking at the daily chart, we see that an invalidation of the small breakout above the upper border of the very short-term green rising trend channel triggered a pullback to around $53.

Despite this drop, the bulls didn't give up and pushed the futures to the upper border of the formation once again during Friday's session. But the resistance withstood the buying pressure, and prices moved lower eventually.

Earlier today, the buyers made another attempt to move higher, but as long as crude oil futures remain trading inside the green channel and below the red resistance zone (created by the upper border of the formation and last week's peaks), a bigger price increase is not likely to be seen. Short-lived moves in both directions should not surprise us in the very near future.

Nevertheless, looking at the buy signals generated by the indicators, it seems that the bulls will test the above-mentioned resistances in the following days. Their performance in this area will show what could happen next. Therefore, in our opinion, waiting on the sidelines for more clear clues to emerge is justified from the risk/reward perspective.

Summing up, the bulls tried to move higher a few times recently, but the upper border of the rising green trend channel stopped them each time. The daily indicators' buy signals hint at an increasing likelihood of another upswing attempt targeting the upper border of the formation. Their performance at this upcoming test of this resistance will provides us with more clues.

Trading position (short-term; our opinion): No position is justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist