Sent to subscribers on January 19, 2017, 7:11 AM.
Trading position (short-term; our opinion): Short positions (with a stop-loss order at $56.45 and an initial downside target at $45.81) are justified from the risk/reward perspective.
On Wednesday, crude oil lost 2.57% after the head of the IEA warned of a significant increase in U.S. shale output as OPEC and non-OPEC producers cut output. This news negatively affected the investors’ sentiment and pushed the black gold under important support levels. What does it mean for light crude?
Let’s examine the charts below to find out (charts courtesy of http://stockcharts.com).
Yesterday, we wrote the following: