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.

On Friday, crude oil wavered between small gains and losses as uncertainty around the U.S. rig count data weighed on investors’ sentiment. As a result, light crude gained 0.14%, but closed the day under the Fibonacci resistance. What’s next?

Today’s alert is going to be quite short, 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 to the 38.2% Fibonacci retracement, but then reversed and cancelled almost all gains. Such daily reversal is a bearish sign, but the outlook was bearish anyway, so nothing really changed.

Consequently, the comments that we made on Friday remain up-to-date also today and if you haven’t had the chance to read our last 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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