Trading position (short-term; our opinion): Short positions (with a stop-loss order at $39.12 and an initial downside target at $33.66) are justified from the risk/reward perspective.

Today’s Oil Trading Alert is going to be quite short, because the overall technical situation in crude oil hasn’t changed much. Although the commodity moved little higher on Thursday, the key resistance area created by the Aug low and the upper line of the red declining trend channel stopped further improvement, triggering a small pullback. Earlier today, we saw another unsuccessful attempt to break above the resistance zone, which means that as long as there is no breakout above it lower values of the commodity are more likely than not. Therefore, if you haven’t had the chance to read Thursday’s alert, we encourage you to do so today – it’s up-to-date:

Oil Trading Alert: Crude Oil Trapped In Narrow Range

We will 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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