Short Oil @ 59.60 - 60.00 area Fib 0.50 line.

Oil has had a nice bounce from the Jan 2019 lows, and I believe it's time for a little pullback. This 59.60 - 60.00 area is an important pivot point, exactly sitting at the Fib 0.50 line, which will prove very hard to be broken. We consolidated in this region back in 2015 and fell hard. Remember that we are in a secular bear market, and this up movement from the Jan lows could be seen as a bear flag. First price target is 55.5, and then a second, a little aggressive price target would be 50.5. Given that the general equity market fundamentals point to a pull-back, shorting oil will be high probabilty trade. Enjoy the profits!!!

Comment:

As expected, oil hit 60.22, and we are short here. 04/18/19 USO 12.5 550 put contracts filled @0.33. $18K deep.

Comment:

First trade closed @ $4K profit, and the second trade stopped out at -$2K loss. Overall +$2K profits.