Trading position (short-term; our opinion): Long positions (with a stop-loss order at $42.95 and initial upside target at $50) are currently justified from the risk/reward perspective.
On Thursday, crude oil extended gains as optimism over OPEC's output cut plan continued to weigh on investors’ sentiment. In these circumstances, light crude climbed above $48 and hit a fresh Sep high. Will we see a test of the barrier of $50 in the coming week?
Today’s alert is going to be very brief, because crude extended gains and remains on the way to higher levels. With yesterday’s upswing light crude broke above the early Sep high and almost touched the Aug 26 peak, which is also the upper border of the red resistance zone (marked on the daily chart in yesterdays alert). Taking this positive event into account and buy signals generated by the indicators we believe that the comments that we made yesterday remain up-to-date also today and if you haven’t had the chance to read our Thursday’s alert, we encourage you to do so today. We will provide you with a bigger update once we see weekly closing prices.
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, Gold & Silver Fund Manager
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