Play the Rebound on Oil and Gasoline

Story: For a number of highly-discussed ab debated reasons, that do not need to be presented here, petrochemicals have seen a substantial devaluation over the course of the last 2 months. While the view from a macro-perspective remains bearish, a rebound from the recent sharp downturn would not a surprise.

Note: The trades presented offer a 1 to 1.75-2.0 risk/reward and are positions taken in my portfolio.

Trade closed: target reached:

Small update on this, albeit with a slight delay. USO appeared to be eligible for a SL, as per the chart, but given that UGA was behaving in a supportive way, this was not taken. Instead both positions were kept open until their TPs which materialised at the beginning of March.

In retrospective, the TPs and SLs should have been placed slightly wider, as reflected by the substantial move of oil over the last 2 months. Always assess your SLs before closing a losing position, but never become greedy on the upside!