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

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

Neither yesterday nor today before have the oil bulls managed to close Wednesday's gap which continues to support the bears. Oil prices declined yesterday but the bulls were strong enough to step in and erase a part of their earlier losses before the closing bell. However, they don't appear that strong today with black gold trading at around $55.75, challenging yesterday's lows. That's well below both the blue consolidation and the 38.2% Fibonacci retracement - it's right at the lower border of the rising green trend channel. While the daily indicators are on their sell signals, the bulls can perhaps find at least a temporary respite at the trend channel's lower border. No position is justified from the risk-reward point of view.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist