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

On Monday, the black gold moved little higher as expectations of acrude oil production cuts supported the price. As a result, light crude climbed above the Friday’s, but did this increase change anything in the overall picture of the commodity?

Today’s alert is going to be brief, because crude oil didn’t do anything that would change the outlook on Monday and the same applies to today’s session so far. The only thing that crude oil did yesterday is that it climbed above the Friday’s high. However, despite this improvement, the black gold still remains below 3 resistance lines: the medium-term resistance line based on the Feb and Aug lows, the short-term resistance line based on the Aug and Oct highs and the upper border of the short-term rising trend channel.

Therefore, the comments that we made on Monday remain up-to-date also today and if you haven’t had the chance to read our yesterday’s 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.

Thank you.

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

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