Short covering on expiration could be a great short entry

NYMEX:CL1!   Light Crude Oil Futures
Today at 2:30 many oil futures traders will be making moves to cover short positions that expire today. This may lead to an uptick in oil prices but do not be confused by this soft bottom action. While it looks to be rallying at a bottom, this may just be elusive as the supply picture is still overwhelmingly a surplus.

We may get a near-term bounce at these levels, but picking up another speculative short position is worthwhile as we could see oil roll over again. A quick stop/loss to use is the .786 Fibonacci line (at 46.43, in green). If we get a close above, cover your short.

You can effectively short oil with USO puts or UWTI (3x Bear).

We strongly recommend you enter this trade if you have time and proper understanding of the risks involved.


The Enhancing Capital Team
I think DWTI is 3X bear and UWTI is 3X long.
+1 Reply
AdamParmer Trailrunner
Correct! Sorry for the slip up!
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out