Trading position (short-term; our opinion): Long positions (with a stop-loss order at $41.39 and initial upside target at $49.53) are currently justified from the risk/reward perspective.

On Tuesday, crude oil moved sharply higher as renewed hopes that OPEC will cut production and news from Nigeria (where an attack on a major oil pipeline took place) supported the price of the commodity. Thanks to yesterday’s rebound light crude gained 5.75% and climbed to the last week’s high. Will we see further improvement?

Today’s alert is going to be quite short, because crude oil soared to the last week’s high and erased all downward move seen at the end of the previous week. This positive event in combination with buy signals generated by the indicators and the situation the WTIC:UDN ratio suggests further improvement in the coming days.

Therefore, the comments that we made on Tuesday remain up-to-date also today and if you haven’t had the chance to read our yesterday’s alert, we encourage you to do so today.

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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