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

On Wednesday, crude oil moved higher once again and approached this week’s high, but did this increase change anything in the very short-term picture of the commodity?

Today’s alert will be very short, because the situation in the very short term remains almost unchanged. Although crude oil bounced off the upper line of the declining trend channel and approached the Tuesday’s high, the commodity is still trading under two resistance lines: the first - based on the Aug lows and the second one based on the Aug 19 and Aug 29 highs. Taking this fact into account, we think that as long as there won’t be breakout above these resistance lines or a breakdown below the Sep low, very short-lived moves in both directions are very likely. Therefore, in our opinion, waiting at the sidelines for another proftable opportunity is justified from the risk/reward perspective. 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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