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

On Tuesday, crude oil wavered between small gains and losses as uncertainty around a U.S. presidential vote kept investors on the sidelines. As a result, light crude moved slightly higher, but closed the day under the previously-broken 50% Fibonacci retracement. What’s next?

Today’s alert is going to be very brief, because based only on yesterday’s price action, we can write that the commodity didn’t do anything new. It moved slightly higher and approached the previously-broken 50% Fibonacci retracement, but then reversed and closed the day under $45.

However, the most important events took place earlier today when Donald Trump surprised financial markets by winning the U.S. presidential election. Thanks to this news, crude oil futures extended losses and approached the Sep low, hitting an intraday low of $43.10. Although oil bulls pushed them higher in the following hours, they remain under yesterday’s high, which suggests that after the market’s open crude oil may also go lower and re-test the strength of the recent low and the 200-day moving average (around $43.53-$43.57).

Consequently, the comments that we made yesterday remain up-to-date also today and if you haven’t had the chance to read our yesterday’s alert, we encourage you to do so today.

As always we will 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

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts