Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $33.78 as the stop-loss level. We might adjust this target in the following Alerts.

Today's Oil Trading Alert is going to be very brief. The reason is that black gold is declining just as we've been expecting it to, and the general stock market is moving lower after having corrected almost 38.2% of the preceding slide.

We have entered the short position at $23.43 and at the moment of writing these words, crude oil is trading at $21.71. Still, it seems that the next wave down has only begun, and that the profits on this short position are going to increase substantially before we take them off the table.

Summing up, the corrective upswing in crude oil seems to have ended, and another leg lower is already underway. Our profits on the current short position are likely to grow considerably in the following days.

Trading position (short-term; our opinion): Trading position (short-term; our opinion): Short positions in crude oil (100% size of the regular trading position) are justified from the risk to reward point of view with $11.22 as the binding profit-take level, and with $33.78 as the stop-loss level. We might adjust this target in the following Alerts.

Thank you.

Nadia Simmons
Day Trading and Oil Trading Strategist

Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager