Trading position (short-term; our opinion): Short positions (with a stop-loss order at $48.56 and initial downside target at $35.24) are justified from the risk/reward perspective.
On Tuesday, crude oil extended gains after Iran deputy oil minister commentary. Rokneddin Javadi told that Iranian production could return to pre-sanction levels in two months, which raised hopes that Iran might want to renew talks on freezing output when OPEC meets next in June. As a result, light crude climbed to an intraday high of $42.88, but did this increase change anything in the technical picture of the commodity?
Today’s alert is going to be quite short, because although crude oil moved higher and hit an intraday high of $42.88, the technical picture of the commodity didn’t change yesterday and the same applies to today’s session so far. Earlier today, crude oil futures moved lower and slipped to $41.30, which means that what we wrote in our previous Oil Trading Alert is up-to-date also today. Therefore, 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 once we see more interesting developments on the crude oil market - most likely tomorrow.
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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