Trading position (short-term; our opinion): Short positions (with a stop-loss order at $56.45 and an initial downside target at $45.81) are justified from the risk/reward perspective.
Although crude oil moved a bit higher after yesterday’s market’s open, oil bears didn’t give up and successfully pushed the black gold lower. How low could light crude go 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 on Friday and the same applies to today’s session so far. The only thing that crude oil did on Friday is that it moved initially higher and verified the breakdown under the 50% Fibonacci retracement. Such price action is a bearish sign, but the outlook was bearish anyway, so nothing really changed.
Consequently, the comments that we made on Monday 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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