CRInvestor

USO 3m analysis - short heading into the weekend

Short
BATS:USO   United States Oil Fund
0
Oil prices were very soft coming out of weekly options expiry and heading into the weekend. There was considerable open interest in the $37.00 put options (4k) so if those holders were exercised then there ought to be a bit of stock overhanging the market through the coming sessions. As the close of Friday approached a 3m 'BoT' short setup developed. While I am unable to hold onto positions through the weekend, it is relevant to at least respect what the market is telling us. Indeed, if I had my druthers, I would like to be short from the $37.03 area with a stop just above $37.15 (13 ticks risk) and a target of $36.68 (35 ticks potential reward). Ideally, I would prefer to have on 2 cars and cover one at indicated target while leaving the remaining 'freebie' on with a stop at b/e and a target based off the higher time frame analysis....

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