Oil prices are coiling up for a move which will eventually head towards to the mid $60s for the following reasons:
- DXY destruction
- Demand bottoming
- Chaos in the Middle East at some point
Pit stops along the way are marked by the fib extension from the first impulsive move - 0.5 and 0.618 being the most significant.
The simplest strategy is to...
Two months after UCO reached the top of its channel, it had moved down and slowly meandering its way back up again. But what if UCO is slowly ascending to the next level? Its drop on Aug 12 might have been a set up to try to gather enough energy to continue moving upward. However, it won't be without drops and sideways movements in between. The next level to reach...
Crude Oil sold off today at first however, traders decisively bid the price back up above the 200 day EMA.
Note: The light blue 50 EMA on this 4hr chart is equivalent to the 200 day EMA
This bullish price action tells me that the 200 day EMA is now the launch pad for traders to take this to the next level up. Most likely that would be the 50 week EMA around...
Crude oil has been in a massive ascending wedge with UCO currently on its way to around $33. Its a nice little play at the moment, but on hitting that upper resistance and perhaps melting up we might see a catastrophic fall (probably around the same time people clue in to the fact that our economies are all screwed and no one is spending money anymore, or OPEC+...
There's too much noise. Covid lockdowns, vaccine hopes, China trade retaliation, etc.
There was a break out of the wedge that most traders have drawn out however, I think it's more likely price breaks back down in order to build momentum for the next move higher. Ideally, there could be some good buying opportunities around the 200 EMA on the 4hr...
Head and shoulders on 4 hr, FIB levels - .382 fib is $34.58, .50 level $32.83. Neckline for confirmation is $35.96. I am in SCO - Oil bear 3x etf and double inside day on chart. Covid news with some states spiking up with places re-opening. This would be bearish same sectors that fell in march. Happy trading, GL!
WAY OVERSOLD and oil companies cannot function at this level. There will likely be another cut coming soon.
Stay within the lines.
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Since, WTI futures are time bound and we can't hold it for longer term. UCO looks great for long term hold. UCO once traded at $25 and now its a bargain at $1.70. it's for a swing trade if you can't afford crude oil lots.