The oil trade has the masses crowding the same trades banks and energy up 26% in 5 weeks. Considering the economic data, the start of a bear market, slowing economy, possible rate hikes and the shift to EV oil got way ahead of itself and I would expect a 12-15% correction in the coming weeks. Some would look at this chart and call a breakout, I think an 8 year high in oil going into a slowing economy is reminiscent of 2008 when oil hit $151 intraday was a blowoff top, the same time Goldman Sachs was pounding the table predicting $250 a barrel oil, within a couple months later oil hit $35. I think as usual the crowd is wrong here and I am usually a contrarian on everything! BTW, Feb 9th is XOM ex-dividend date so likely the stock will remain artificially elevated until then. GL
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Additionally there is political pressure on the Democrats and Biden for midterms with these record gas prices, record inflation, crises everywhere you look which leads me to believe something will be done to "ease the pain" for us working class voters.
Trade closed manually
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Closed both XOM and USO on Thursdays drop. 17 and 47% profits. Will wait to hit higher
I think USOIL is headed higher ultimately. But in the short-term I think its so overbought. Good luck with your trade and thanks for sharing.
ShortSeller76
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@Tradersweekly, it's quite possible, I am only looking for a pullback as mentioned it's not a short and hold. GL
Tradersweekly
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@ShortSeller76, Alright, thanks for the reply. Wish you best luck!
ktaba
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USO will have a pullback, but ultimately it’s headed much much higher. There is absolutely nothing the Biden administration can do other than Iran talks. Price of oil going past $100 easily. Good luck!