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 will be 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 moved lower once again as disappointing Chinese data (which showed that Producer Price Index dropped by 5.9% in the previous month, marking the 43rd straight month of declines and the biggest drop since the peak of the Financial Crisis, while the annual rate of inflation slowed to 1.6% in Sept) fuelled concerns over lower global demand for crude oil and pushed light crude to an intraday low under $46. This means that the commodity is on track to reach our first downside target - the upper border of the declining blue trend channel (currently around $45.35).
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 Extends Losses
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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