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

On Monday, crude oil lost 1.60% as the Baker Hughes report (which showed that the number of rigs in the U.S. increased once again, marking the 15th increase in 16 weeks) continued to weigh on investors’ sentiment. As a result, light crude declined and closed the day below the barrier of $50. Is it enough to trigger further deterioration?

Today’s alert is going to be short as not much happened yesterday. Although crude oil declined and closed Monday’s session under the barrier of $50, the commodity is still trading in the blue consolidation in the red (key) resistance zone. Therefore, everything that we wrote previously remains up-to-date and there’s not much that we can add today.

Nevertheless, we will provide you with a bigger update once we see more interesting developments on the crude oil market. 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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