Trading position (short-term; our opinion): short position with a stop-loss order at $59.77 and the downside target at $53.05 is justified from the risk/reward perspective.

Today's message about the Oil Trading Alerts is going to be short as Nadia Simmons is not in the position to write the regular issue in full today. Still, she is keeping an eye on market developments, and has sent in the following summary:

Yesterday's oil session marked a continuation of Wednesday's selloff. The bears took the commodity well below the 50% Fibonacci retracement (at around $54.65) to the vicinity of the rising green support line. Before the closing bell however, black gold recovered and closed at $55.09, which is back above the 50% Fibonacci retracement. Both the CCI and the Stochastic Oscillator's sell signals continue supporting the move lower though and neither the daily volume flashes signs of an upcoming reversal in earnest.

Earlier today, the bulls are staging a recovery after rebuffing the previous move lower. The short position however remains justified. As always, we'll keep you - our subscribers - informed.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist