Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
Increase after the market’s open, test of the 200-week moving average and another approach to the barrier of $50. In these several words we can summarize yesterday’s price action in crude oil. But what are its implications?
Today’s Oil Trading Alert will be extremely 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.
Yesterday, crude oil increased a bit after the market’s open, but then reversed and declined, closing the day slightly above the recent lows and the barrier of $50.This means that the commodity verified the earlier breakdown under the 200-week moving average, increasing the probability that one more downswing before a potential bigger rebound in the very near future.
Taking this fact into account, we believe that what we wrote in our last comments remains still valid and if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:
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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