Trading position (short-term; our opinion): Short positions (with a stop-loss order at $53.22 and initial price target at $46) are justified from the risk/reward perspective.
Today’s alert is going to be once again very short, as the situation evolves exactly how we described in the previous alerts. In yesterday’s alert we wrote the following:
“(…) the price of crude oil is once again testing the $50 level. It doesn’t seem likely that it would confirm the breakout back above this level anytime soon and since the bearish signs remain in place, so does the bearish outlook. Our speculative short positions remain profitable and it seems they will become much more profitable before this trade is over.”
The price of black gold moved back to $50 and declined once again, closing about $0.30 below it. The move lower continues also today - crude oil is trading at about $49.30 at the moment of writing these words. We will most likely have more to comment on on Monday, as we’ll have the weekly closing prices and weekly changes, but for now we can say that the bearish outlook remains in place and the profits on the current short position are likely to increase in the coming days. As always, we’ll keep you – our subscribers – informed.
Very short-term outlook: bearish
Short-term outlook: mixed with bearish bias
MT outlook: mixed
LT outlook: mixed
Trading position (short-term; our opinion): Short positions (with a stop-loss order at $53.22 and initial downside target at $46) are 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
Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts
