Crude oil continues to consolidate, approaching the key $68 level once again.
Crude oil futures contract gained 0.95% on Friday, extending its short-term consolidation amid geopolitical uncertainty and stock market volatility. Prices basically continued moving sideways following declines in January and February.
Today, oil prices are up 0.9%, extending Friday’s advance and approaching the $68 level again.
Conclusion
Crude oil remains in consolidation as geopolitical developments and the stock market volatility add to uncertainty. The market is awaiting the key Fed release on Wednesday, followed by the inventory report.
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.
I think that no positions are justified from the risk/reward point of view.
Here’s the breakdown:
- Crude oil has been gaining since Friday, continuing its consolidation.
- In my opinion, the short-term outlook is neutral, and no speculative positions are justified from the risk/reward point of view.
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