Trading position (short-term; our opinion): Short positions with a stop-loss order at $54.12 and initial (!) target price at $35.72 are justified from the risk/reward perspective.

Today’s Oil Trading Alert is going to be very short, because from the technical point of view nothing changed on the crude oil market on Wednesday. Based the most recent developments we would have written exactly the same alert as we wrote yesterday. Consequently, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today.

Oil Trading Alert: Supply Glut Continues to Weigh

Finishing today’s alert, please note that the U.S. Energy Information Administration reported that crude stockpiles increased by 0.3 million barrels last week for the week ending on Nov. 13. Although the report showed that distillate inventories decreased by 0.8 million barrels, gasoline inventories increased by 1.0 million barrels, which toghether suggests lower values of the commodity later in the day.

Very short-term outlook: bearish
Short-term outlook: bearish
MT outlook: bearish
LT outlook: mixed with bearish bias

Trading position (short-term; our opinion): Short positions with a stop-loss order at $54.12 and initial (!) target price at $35.72 are justified from the risk/reward perspective. We will keep you – our subscribers – informed should anything change.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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