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

Today's Alert will be relatively short. The reason is that due to the overnight rally in crude oil and the reason behind it, it appears that the market might move in a rather chaotic manner today and perhaps tomorrow. Consequently, it seems best to wait for the true resistance to show itself (for instance in the form of the daily reversal) that will then allow us to provide you with details regarding the next trade in crude oil.

The previous position was closed based on the stop-loss being reached and it's this unfortunate case that has to happen every now and then. Having reviewed the charts once again, we think that the indications from them were indeed pointing to lower crude oil prices, but there are simply some things that just can't be predicted based on charts alone. The charts will get us the correct forecasts most of the time (and this year's profitability of Oil Trading Alerts proves it), but not in each and every case.

At this time, it seems better to take the wait-and-see approach regarding crude oil's strength and discuss the implications (and perhaps open a new trading position) once the initial emotional reaction to the news burns itself out.

As always, we will keep you - our subscribers - informed.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist