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 Monday, crude oil lost 0.81% as oil investors reacted to the Friday’s Baker Hughes’ report, which showed a further rise in the number of rigs in the U.S. In this environment, light crude closed another day under the 38.2% Fibonacci retracement. Will it test the recent lows in the coming week?
Today’s Oil Trading Alert will be extremely short, as basically nothing changed on the market since we commented on it on Friday and today’s alert could simply be a repeat of that issue. Earlier today, crude oil extended losses and slipped to yesterday’s lows, which means that the commodity remains below the 38.2% Fibonacci retracement and came back under the200-day moving average. This is a negative development, which increases the probability of further declines. Therefore, if you haven’t had the chance to read our Friday’s alert, we encourage you to do so today - it’s up-to-date:
Oil Trading Alert: Barrier of $50 Holds
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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