US Oil also broke out of its down channel. There should be a retest. Short term opportunity to short UCO when it hits the upper trend line at $17.50++. Watch how UCO behaves when it hit the upper down channel line. Could be a continuation of the up channel or the down channel. The trend is your friend.
Bull oil ETF for possible gain. Should it continue bull, target around 16ish and should find itself oversold on the daily then pull back. Just a short term trend thing.
Based on the cyclical evolution of UCO, it could be the time to buy. The long term trend is negative and there is some potential fighting to push over $17. If somebody decides to place a buy at lower limit ($15), there could be a better risk/reward, but also a chance that this trade could be missed.
UCO has an interesting setup to go long at the open, ideally if we make a new daily low here. We can enter at the open, but it'd be nicer if we hit 8.91, risking a drop to 8.35.
Upside is considerable, and this ETF uses up half the cash compared to UCO, so it's a good vehicle to ride the post-OPEC meeting rally -if correctly diagnosed-.
Good luck,
Ivan Labrie.
This is potentially a very good trade, for the time being, we can expect it to retest the top of the range. If you didn't buy with me and my clients yesterday at the close, you can buy here, risking a new low under the recent lowest low. Target is at least a retest of the previous rally's top, but it could evolve into resuming the longer term 'Time at mode'...
Three times in the past couple of months UCO has followed a stair type pattern where it will bounce off resistance, break the resistance and then use it as the floor for it's next "step" up in price. Will this pattern continue with the resistance level that was broken at the $13.00 mark?
Hello all,
if you are a bottom picker here is an interesting options play in the energy market on nothing more then a natural 'dead-cat-bounce'. I can make a realistic argument for $20 on UCO. This would be nothing more then a normal 38.2 Fib tag, gap fill and a bfrn tag (markets just love to run to big fat round numbers). I would expect this dead-cat-bounce to...
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