Trading position (short-term; our opinion): Long positions (with a stop-loss order at $41.39 and initial upside target at $49.53) are currently justified from the risk/reward perspective.
Today’s alert will be rather short as not much changed on Friday (no new intra-day lows) and today’s changes are not yet visible on the chart. Today’s move lower in crude oil below $43 (to about $42.50) could be viewed as a breakdown below the September lows, but we don’t view it as such - at least not yet. The reason is that today’s session is far from being over and the move below $43 was almost invalidated. Depending on the closing price, we could see a breakdown, but we could also see a reversal and invalidation of the intra-day breakdown, which would be very bullish. Consequently, we keep the long position intact, and we are not moving the stop-loss order lower, even though it is relatively close. Thanks to this approach, we keep the chance to profit on crude oil’s comeback and at the same time, the potential losses from here are very limited.
As always, we will keep you - our subscribers - updated.
Trading position (short-term; our opinion): Long positions (with a stop-loss order at $41.39 and initial upside target at $49.53) are currently justified from the risk/reward perspective. We will keep you informed should anything change, or should we see a confirmation/invalidation of the above.
As a reminder – “initial target price” means exactly that – an “initial” one, it’s not a price level at which we suggest closing positions. If this becomes the case (like it did in the previous trade) we will refer to these levels as levels of exit orders (exactly as we’ve done previously). Stop-loss levels, however, are naturally not “initial”, but something that, in our opinion, might be entered as an order.
Thank you.
Nadia Simmons
Forex & Oil Trading Strategist
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager
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