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. On Monday, crude oil lost 0.67% as the combination of mixed economic data from China and a record-high production (which hit a post-Soviet record of 10.78 million barrels per day) in Russia in Oct. fuelled worries over a long-term supply glut and pushed light crude to an intraday low of $45.56. This means that the commodity remains below important long- and medium-term resistance lines. Earlier today, we haven’t seen any important breakout/breakdown, which could change the overall situation. 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: More of the Same – For Now

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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