I’m erring on the side of the trend on USO until there is irrefutable evidence to consider the bottom as in wave (5) facing support zone 15.25 setting up same degree corrective (A), (B), (C) rally.
Could oil for the summer be finding a base?
Prompt-month RBOB futures have been very quiet relative to the antics in oil. 75 cents appears to be very important.
The title was at least my reasoning on the trade... On April 20th, as the big news was that Oil was quickly becoming "free" I wanted to participate in this once-in-a-lifetime opportunity. My preferred instrument to trade oil has always been USO as it is an equity, optionable, and highly liquid. At the time USO was trading at 3.8. I decided to sell the 2.5...
I would not invest right now in this Fund. Just Wait. Short term Analysis does not give any significant signal. Perhaps, there might be a rally to get the bottom line (level) of the previous Descending triangle
Oil collapsing... Will algos get their $5.21 barrel?
Reasons to short soon. #1: they filed for bankruptcy #2: earnings coming up with 100% won't be good #3: going up WAY too fast absolutely not sustainable for a full bull run to break and highs or necklines. Of course wait till it confirms the downtrend by breaking under previous high on the bull run.
I would advise any retail investor to research financial instruments extensively before investing hard-earned money. Buying USO shares is not the same as 'longing oil'. There are different ways to increase exposure to the WTI crude price, take these into consideration and map out a plan. Trade safe and good luck!
Description: An analysis for the week ahead. Points of Interest: 2730-2845 Balance Zone; Targets 2930, 2630; CBOE:VIX at 36. Technical: Nasdaq leading to the upside, with a complete retracement of Thursday’s news-driven sell-off. Market is balancing, leveraging time to correct, rather than price. Composite profile (2/19-4/24) POC at 50%...
Also, MACD crossing towards the upside. Until Oil closes above the downward trend line (Yellow trend line), MACD could be a false signal. Wait until confirmation.
USO: Line of support under $0.00 (if that's possible). This line could be forming basis for up sloping PF and the lower parallel CL1!: Biggest question is if median line holds this drop or if a decade of sub $0.00 prices is setting up. If next several months hold above the red median line then price could move off it. If April and ensuing months close below...
I changed my position on USO. I think it's going below last low and headed for a double-dip. Big institutional players always want to take price to the next best liquidity and to me, the purple area I highlighted is the target. There's going to be panic down there so the selling will be massive which of course best time to buy long What do you think?
USO continues to follow the purple downtrend I drew last week. The short term bull trend couldn't hold and today opened below the support levels (shown as 1st the horizonal purple line). I was able to get cheap $3.5 calls at market open, and could've taken a 75% profit but decided to chase more gains (bad move) and the market closed with my options up about 30%...
Little Leading Diagonal in Oil Prices on the 15mn Time Frame?
The WTI can pump at any moment, to be honest. We are at incredibly low prices! Lower algo target is set at $5.21. Bullish divergences all over the place... What will be the impact on indices if we bottom?
Amazing what is happening with OIL. especially USO. I know there is a lot of fear in the market...but imagine you were sitting on some cash (cause you listened to Matt about financial markets being overbought and you protected yourself). Imagine you bought USO at this level...imagine in 10-15-20 years what that position could look like? Sure we could all go...
WTI hit my $16 target..... Loading up at $3, along with some June calls.