Oil Trading Alert originally sent to subscribers on December 21, 2015, 9:46 AM.
Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
On Friday, crude oil lost 0.78% as a combination of bearish reports from Genscape, Inc. and Baker Hughes weighed on investors’ sentiment. Thanks to these circumstances, light crude closed another week under the Aug lows, but is it enough to trigger a drop to a fresh low?
On Thursday, Genscape, Inc. reported that stockpiles at the Cushing Oil Hub in Oklahoma increased by 1.4 million barrels last week and are close record highs. On top of that, Friday’s Baker Hughes report showed that U.S. oil rigs rose by 17 to 541 for the week ending on December 11, which together affected negatively investors’ sentiment and pushed the commodity to an intraday low of $35.68. What’s next? Let’s examine charts and find out: