Trading position (short-term; our opinion): Small (half of the regular size) short positions (with a stop-loss order at $61.13 and the initial downside target at $52) are justified from the risk/reward perspective.

On Friday, crude oil lost 0.75% after Baker Hughes report renewed worries over rising U.S. production. Thanks to this news, light crude re-tested the nearest support, but will it stop oil bears in the coming week?

Today’s alert is going to be very brief, because crude oil didn’t do anything new. It moved to the previously-broken upper border of the black rising trend channel, but there was no breakdown below it. This is a repeat of what we already saw on Wednesday, therefore, the comments that we made on Friday remain up-to-date also today and if you haven’t had the chance to read our last alert, we encourage you to do so today.

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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