Trading position (short-term; our opinion): Short positions (with a stop-loss order at $35.63 and a price target at $25.63) are justified from the risk/reward perspective.

Today’s alert is going to be quite short, because crude oil didn’t do anything that would change the outlook yesterday and the same applies to today’s session so far.

The only thing that crude oil did on Thursday is that it moved initially higher but then reversed and cancelled all gains and finally closed the day 0.12% lower. Such daily reversal is a bearish sign, but the outlook was bearish anyway, so nothing really changed.

Consequently, the comments that we made yesterday remain up-to-date also today and if you haven’t had the chance to read our previous Oil Trading Alert, we encourage you to do so today. We will provide you with a bigger update once we see more interesting developments on the crude oil market - most likely on Monday.

Thank you.

Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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