Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

Today’s Oil Trading Alert will be quite short, as basically nothing changed on the market since we commented on it yesterday and today’s entire alert could simply be a repeat of yesterday’s issue. Although crude oil moved little higher and increased to an intraday high of $41.80, Monday’s move materialized on tiny volume (compared to the size of volume that we saw on Friday), which suggests that oil bulls may become weaker. Additionally, the Stochastic Oscillator generated a sell signal (not strong, but still), which increases the probability of reversal. 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 yesterday’s alert, we encourage you to do so today - it’s up-to-date:

Oil Trading Alert: Crude Oil – North or South?

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

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