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

On Monday, crude oil gained 2.57% as heavy profit taking supported the price of the commodity. As a result, light crude bounced off the key support zone and climbed to an intraday high of $36.70. What’s next?

Yesterday, crude oil bounced off the key support zone and climbed to an intraday high of $36.70. Therefore, we believe that yesterday’s decision to take sizable profits off the table (we published Oil Trading Alert at 9:25 AM and you had a chance to close short positions at the opening price of $35.40) was very good. Earlier today, we haven’t seen any important breakout/breakdown, which could change the overall situation (in our opinion, it still too unclear to re-open short positions at the moment). Therefore, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:

Oil Trading Alert: Crude Oil Extends Losses

As always, we’ll keep you - our subscribers - informed should anything change.

Thank you.

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

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