$SCO has been forming a bottoming pattern for the last couple of months is about ready to break out. Upon breakout, I can see the first big target being $11.53 which would be the 50% retracement of the move.
Let's see what happens over the coming weeks.
I will be buying some slightly ITM Calls here expiring in the middle of April in anticipation for US Oil to potentially go down by the end of the Quarter due to the Fed's monetary tightening.
The technicals look good for this Bearish ETF; Bullish Divergence visible on both the MACD and RSI and along with that we are at the PCZ of a Bullish ABCD.
According to the indicator RSI, SCO is oversold and ready to rebound to at least $35 with a peak of $60.
We think that the current oil price is overdue and ready for a retracement.
"World’s largest oil exporter plans to reverse recent unilateral production cut, signaling confidence in recovery"
Hi mates, i posting another of my todays trades. Its based od triple top on in my another idea posted few days ago. Its in realated.
here is data for my swingtrade:
------------------------Trade setup ---------------------------
Stop Loss: 9,82
Profit target: 10,62
Time stop: 3...
First trading day in 2021 is key for NYMEX:CL1! AMEX:SCO it seems. Today was very volatile wide range day on high volume, traded completely out of value area of volume profile.
I expect sharp drop on NYMEX:CL1! and you can trade it by this leveraged ETF AMEX:SCO .
First target is 12.87 level
If you like the idea, do not forget to support with a 👍 like...
One of the few tickers I like to buy shares in. I like this long (shorting oil ) at least to the 200 sma on the 4 hr chart. Pretty low risk setup. If it breaks my hard stop of $18.20, I'll be looking for some rsi divergence for a possible headfake.
Interesting. When you look at the inverse of oil, symbol SCO, you can see support over a very long period of time. It's almost as if it is poised to start climbing again! This is something I'll be actively monitoring.
23.5 looks like an important level, though its not clear whether it will hold as support. The technicals to me look somewhat bearish, but there's a strong (perhaps stronger) case for SCO to keep declining if oil bridges the gap it is approaching due to increasing demand and supply cuts.
The trend I referred to in my WTI chart earlier today: possible long for the inverse ETFs if oil can’t fill the gap; however this trend on SCO could just as easily not hold if oil does manage to fill the gap due to reopenings.
I got stopped out today by the squeeze happening in WTI.. This is what I'm thinking will be the path going forward, I thinking with option expirations the DXY has gone ahead and did the exact
opposite of what I thought was going to happen, and I remember thinking that the dxy break out looked rising wedge patternish when I was still watching the break...