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

Oil challenged Tuesday's opening prices, yet closed well off the daily lows. And the bulls have been on a move earlier today. What has changed and what has not?

Let's take a closer look at the chart below (chart courtesy of www.stooq.com ).

Although crude oil futures opened today with a small bearish gap, the bulls took control made a rebound happen in the following hours.

The gap closed the gap, and futures rose slightly above yesterday's high. Despite this superficial improvement, the overall situation in either the short or very short term remains almost unchanged as crude oil futures are still trading inside the blue consolidation around the lower border of the orange resistance gap created at the beginning of the week.

Therefore, as long as we do not see a breakout above the upper line of the formation, or a breakdown under the lower border short-lived moves in both directions are likely.

Summing up, the situation remains too unclear to open any trading position at this time as black gold keeps trading inside its recent consolidation.

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

Thank you.

Nadia Simmons
Day Trading and Oil Trading Strategist

Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager