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.
On Wednesday, crude oil moved little lower after the EIA showed another increase in crude oil inventories. Thanks to this news light crude slipped under last week’s high and closed the day below it. But will this invalidation change anything?
Today’s alert is going to be brief, because although crude oil moved little lower and invalidated the breakout above the last week’s high yesterday, oil bulls pushed the commodity higher earlier today. With this move, the black gold came back to around yesterday’s high, which suggests further improvement – especially when we factor in buy signals generated by the indicators, which continue to support higher prices.
Therefore, the comments that we made on Tuesday remain up-to-date also today and if you haven’t had the chance to read that 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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