Trading position (short-term; our opinion): Short positions (with a stop-loss order at $35.63 and a price target at $25.63) are justified from the risk/reward perspective.

Today’s alert is going to be very brief, because crude oil didn’t do anything new. It moved to the neck level (based on the March 2015 and August 2015 lows) of the head and shoulders pattern, but there was no breakout above it. This is a repeat of what we already saw earlier this year and there are no bullish implications of this move.

Consequently, the comments that we made yesterday 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. We will provide you with a bigger update on Monday, once we get the weekly closing prices.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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