Oil Upswing Attempt Gives Way To Renewed Selling

The overall situation in the short term remains almost unchanged as crude oil futures keep trading at around Tuesday’s levels. But can we glean more insights from today’s opening prices?

Although crude oil futures opened today with a bullish gap, the sellers took over and pushed prices down in the following hours. This suggests a high likelihood of closing the gap in the very near future.

Should we see such price action, the way for the prices to trend south will be open. The bears can then follow up with a test of the lower border of the purple consolidation and the next green gap, which is where our initial downside target currently is.

Summing up, crude oil ended 2019 with a bearish reversal, with the downswing supported by the extended position of the daily indicators. Regardless of today’s bullish gap, the sellers maintain control over today’s trading action, suggesting that the gap will likely be closed shortly. Our short position continues being justified from the risk-reward perspective.

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Nadia Simmons

Forex & Oil Trading Strategist

Sunshine Profits - Tools for Effective Gold & Silver Investments

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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

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