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

On Tuesday, crude oil wavered between small gains and losses as uncertainty around the U.S. weekly crude and refined products stockpiles weighed on investors’ sentiment. Will we see a breakthrough in the coming days?

Today’s alert is going to be very brief, because crude oil didn’t do anything that would change the outlook. Yesterday, the commodity re-tested the green support zone and rebounded invalidating earlier small breakdown under the upper border of the black declining trend channel. This improvement triggered a climb to the 50-day moving average, but despite this increase oil bulls didn’t manage to push light crude higher. As a result, the black gold slipped to the rising support line based on Feb and Aug lows - similarly to what we saw on Monday.

Taking this fact into account, we believe that the comments that we made yesterday remain up-to-date also today and if you haven’t had the chance to read our Tuesday’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.

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, Gold & Silver Fund Manager

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