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

On Monday, crude oil lost 0.65% after OPEC left its 2016 global crude oil demand growth forecast unchanged at 1.20 million barrels per day. Additionally, oil imports in China declined to four-month low, which weighed on the price and pushed light crude under $49. Will we see further deterioration in the coming days?

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. Yesterday, crude oil extended losses and slipped to our initial downside target – the blue support line based on the late May and Jun lows. Although light crude could rebound from here, we should keep in mind that all sell signals are still in play, supporting further deterioration - just like the position of our ratios. 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 under $50

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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