It's Make Or Break For the Oil Bulls

The breakout above the April highs is a sign of strength, but it’s not been confirmed so far.

Author: Sunshine Profits   


Just like the precious metals market, black gold ended the previous week with a sizable upswing. The rally continued in the early Monday trading, as crude oil moved decisively above its previous April highs.

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 The breakout above the April highs is a sign of strength, but it's not been confirmed so far. Crude oil did close the previous week above the highest daily close of April, but it was just a little higher. The move is definitely bigger based on today's pre-market upswing, but the breakout is still far from being confirmed in terms of time.

The next upside target is the 50% Fibonacci retracement level, which coincides with the mid-March top. However, if the breakout above April highs is invalidated, crude oil could decline all the way down to the $20 level or so, before pausing or bottoming.

 Without enough bullish or bearish signs, we don't think that entering an oil trading position is justified at this time due to the lack of either bullish or bearish confirmations. We expect to see more clues shortly.

Summing up, we might get an opportunity to enter long, or short positions very soon, and increase our 2020 profits, but such opportunity remains absent at this time.

 

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 Contributed By:

Nadia Simmons

Day Trading and Oil Trading Strategist

Przemyslaw Radomski, CFA

Editor-in-chief, Gold & Silver Fund Manager

 

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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 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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