I find USOIL interesting but I WILL STAY AWAY FROM IT.
We have reached an area of resistance, both horizontal resistance and trendline and it has formed an inverted hammer, meaning the higher prices have been rejected. MACD continues to lose strength what makes more of a valid point to short it with a profit target of around 54.5.
Now, if we look at 4H we can see how the price is contracting near the resistance area and after a strong bearish move a couple days ago the price is not breaking the lows an it is just consolidating. That could be a case for a breakout to the upside
This is also supported by 50 and 200 MA on 2H chart
For all these reasons I will stay away but I wont blame anyone who trades USOIL
We have reached an area of resistance, both horizontal resistance and trendline and it has formed an inverted hammer, meaning the higher prices have been rejected. MACD continues to lose strength what makes more of a valid point to short it with a profit target of around 54.5.
Now, if we look at 4H we can see how the price is contracting near the resistance area and after a strong bearish move a couple days ago the price is not breaking the lows an it is just consolidating. That could be a case for a breakout to the upside
This is also supported by 50 and 200 MA on 2H chart
For all these reasons I will stay away but I wont blame anyone who trades USOIL
Comment:
Looks like a break to the upside is more probable now. Still staying away
Comment:
Breakout completed. Look at that beautiful cup and handle pattern and breaking above the resistance area. Next target 66?