Trading position (short-term; our opinion): Short positions (with a stop-loss order at $54.21 and initial downside target at $43.37) are justified from the risk/reward perspective.

Although crude oil increased slightly after the market’s open oil bulls, didn’t manage to push the commodity higher which triggered a reversal and decline. As a result, light crude lost 1.07% and closed the day under the resistance zone. Will we see lower prices in the coming days?

Today’s Oil Trading Alert will be quite short, as basically nothing changed on the market since we commented on it yesterday and today’s entire alert could simply be a repeat of yesterday’s issue. On Tuesday, crude oil increased to $46.38, but then reversed and closed the day under the resistance zone created by the Apr and early May highs, which means that the commodity still remains in a consolidation between the Jul 12 high and low. Earlier today, we haven’t seen any important breakout/breakdown, which could change the overall situation. 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: Another Failed Rally

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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