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 Wednesday, crude oil moved higher supported by a larger-than-expected drop in crude oil inventories, but gains were capped by an increase in gasoline inventories and distillate stockpiles. Additionally, a stronger greenback and uncertainty around OPEC cut deal pushed the commodity lower. Will we see further deterioration?
Today’s alert is going to be short, because crude oil didn’t do anything new on Wednesday. It moved little higher after the market’s open, but then erased gains and slipped to the previously-broken 50-day moving average. This support in combination with the short-term support line based on the previous lows triggered a rebound and the commodity closed the day above both support levels. This was a repeat of what we saw on Tuesday and there are no bearish implications at the moment. 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 Wednesday’s alert, we encourage you to do so today - it’s up-to-date:
Oil Trading Alert: Crude Oil Tests Support
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
Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts
