As certain countries want to exchange oil for money with anything but USD such as Chinese Yen
or even a cryptocurrency to be launched by US neutrals or adversaries cooperating, USO on
this chart rose dramatically over the past month and is now sitting at resistance as shown by
the LuxAlgo Supply and Demand Zone indicator. The RSI shows possible bearish divergence
perhaps heralding a reversal of the uptrend. I see this as a good place to take a short sell
entry and most buyers have taken their profits. Fundamentally there are enough competing
geopolitical and macroeconomic factors to deprive USO of the energy to push through resistance.
See also the link below from US federal forecasters.
I see this as a short trade at a limit price below the resistance zone and stop loss above it.
Profit targets can be the VWAP, the midline between the supply and demand zones as a 50%
Fibonacci retracement of the uptrend and finally one standard deviation below the anchored VWAP
making for a safe three-tiered take-profit procedure to optimize profit and diminish risk also
adjusting the stop loss at intervals using ATR as a guide. 40% at each of the first two targets
and the remainder at the last. Put options 20-30 DTE at the a strike above the resistance zone
for a good delta are another consideration.
or even a cryptocurrency to be launched by US neutrals or adversaries cooperating, USO on
this chart rose dramatically over the past month and is now sitting at resistance as shown by
the LuxAlgo Supply and Demand Zone indicator. The RSI shows possible bearish divergence
perhaps heralding a reversal of the uptrend. I see this as a good place to take a short sell
entry and most buyers have taken their profits. Fundamentally there are enough competing
geopolitical and macroeconomic factors to deprive USO of the energy to push through resistance.
See also the link below from US federal forecasters.
I see this as a short trade at a limit price below the resistance zone and stop loss above it.
Profit targets can be the VWAP, the midline between the supply and demand zones as a 50%
Fibonacci retracement of the uptrend and finally one standard deviation below the anchored VWAP
making for a safe three-tiered take-profit procedure to optimize profit and diminish risk also
adjusting the stop loss at intervals using ATR as a guide. 40% at each of the first two targets
and the remainder at the last. Put options 20-30 DTE at the a strike above the resistance zone
for a good delta are another consideration.
Trade active:
USO dropped to below the first target. Sold back 4 out of 10 puts with a 21% one-day return on those. Stop loss moved to breakeven. Anticipate another good day tomorrow.
Trade active:
Another 85% in put option profits on 6 positions. Liquated 3 of them and bought 10 put contracts for 5/5 @ strike of
70
. Stop loss of 10% target 100%. Price at the jump here is rising while the crude prices are dropping. Someone in the supply chain is making bank in a big way.