Is crude oil poised for a rebound or on the verge of breaching last year’s lows? Dive into today’s analysis to uncover the surprising dynamics at play and what they mean for your trading strategy!
Is crude oil forming a local bottom, or is it going to break below last year’s lows?
Crude oil fell to a new low yesterday, breaking below the $67 level. It continued reacting to the stock market’s sell-off and weak economic data. This morning, oil is trading near its lows. President Trump’s speech in Congress didn’t cause much volatility in the markets. However, a lower-than-expected ADP Non-Farm Employment Change report this morning added to concerns about the economy.
Conclusion
Crude oil extended its downtrend yesterday, reaching the $67 level. Today, it’s trading near its local lows.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Crude oil dipped after last week’s rebound, with sentiment still negative amid stock market weakness and disappointing economic data.
- In my opinion, the short-term outlook is neutral.
The full version of today’s analysis - today’s Oil Trading Alert - is bigger than what you read above, and it includes the current Crude Oil futures contract position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Oil Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Stock Trading Alerts.
And if you’re not yet on our free mailing list, I strongly encourage you to join it - you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free oil newsletter today.
Thank you.
Paul Rejczak,
Stock Trading Strategist