Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.

Although crude oil moved a bit higher on Thursday, the key resistance levels continue to keep gains in check. Will oil bulls manage to break above them in the coming week?

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. On Thursday, crude oil increased to $62.21, but then pulled back, creating a doji candlestick. This means that the buyers' and sellers' forces leveled out during yesterday's session, which suggests that reversal may be just around the corner – especially when we factor in the proximity to the 2015 highs, which continue to block the way to the north.

Earlier today, crude oil futures extended losses and remain below $61.50 (at the moment of writing these words), which suggests that the price of black gold will likely follow them after the market open – similarly to what we saw many times in the past.

Finishing today’s alert please keep in mind that the comments that we made yesterday remain up-to-date and if you haven’t had the chance to read our Thursday alert, we encourage you to do so today:

Crude Oil and Bearish Divergences

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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