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

On Thursday, crude oil declined as a stronger greenback weighed on investors’ sentiment, making the commodity more expensive for buyers holding other currencies. As a result, light crude approached the previous lows. Double bottom or further declines?

Today’s Oil Trading Alert will be extremely 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. On Thursday, crude oil extended losses and approached our downside targets, which resulted in a rebound earlier today. This means that the commodity will likely re-test our initial upside target – the Aug lows in the following hours. If we see such price action, we’ll consider re-opening short positions. Consequently, 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 – Verification of Breakdown?

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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