I previously mentioned that I was looking for a range or top in USO and therefore oil. However, after the past two days I'm having to reconsider that stance. As you can see in the chart, USO came strongly off support and has flown right through its 50 sma on big volume. None of the recent moves in USO have been nearly this aggressive.
I think that USO has upside to 77.50 here and could fly right through that resistance if the news flow is right. If you're looking for a short term trade, you could get long here but where you'd put a stop loss is a bit of a question mark. If it does get to the 77.50 level or a bit above, watch how it reacts. If it's soft, take profits. If it's still strong, take a half off and hold on to the rest.
No comments:
Post a Comment