Trading position (short-term; our opinion): Short positions (with a stop-loss order at $52.52 and the initial downside target at $45.80) are justified from the risk/reward perspective.

Although crude oil declined after the market’s open, oil bulls triggered a reversal and rebound. As a result, light crude gained 0.33% and increased to the previously-broken resistance area. Will we see further improvement in the coming days?

Today’s Oil Trading Alert will be quite 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. Crude oil moved a bit higher and increased to the previously-broken red resistance zone. Nevertheless, yesterday’s upswing materialized not only on smaller volume than earlier declines, but also on smaller volume than Monday’s increase, which suggests that oil bulls may be not strong enough to trigger bigger move to the upside.

Earlier today, crude oil futures moved a bit higher, which suggests that the price of the commodity could follow them after the market’s open. Despite today’s increase crude oil futures remain below the major resistance levels and we haven’t seen any important breakout/breakdown, which could change the overall situation. Therefore, if you haven’t had the chance to read yesterday’s alert, we encourage you to do so today - it’s up-to-date:

Crude Oil from Non-USD Perspective

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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