Short-term Trade: OILU / USOIL Extremely Favorable Risk-Reward
Updated
I don’t believe OILU will stay at the $14 level for very long and conservatively speaking I’d say a 50% swing higher is likely.
Depending on your strategy, you could cap your loss at 2% or whatever your risk tolerance is and then go in full on a breakout. Personally, I’d buy half or a third now and hold. If prices fall, potentially up to 7% or so, I’d accumulate more and once the breakout happens go in full.
Depending on your strategy, you could cap your loss at 2% or whatever your risk tolerance is and then go in full on a breakout. Personally, I’d buy half or a third now and hold. If prices fall, potentially up to 7% or so, I’d accumulate more and once the breakout happens go in full.
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14S if you can get emNote
We need to see some strength and reclamation of a rising trend, otherwise looks like $52, $50, and lower could be in store for USOIL Note
As long as the trend continuous up, then I think $58 is in store. But there is an increasing possibility of a big dump so be watching closely. If it looks bearish and feels bearish, its probably bearishNote
A simple buy and accumulate at the lows strategy would have you up 14% in the last 17 days. ;) Its not about being bull or bear, its about identifying extremes and undervalued or overvalued prices. Oil could go towards $40, but OILU was likely going to move from $14 to $16 before any major move up or down.
USOIL has been technically pretty. Very curious to see how this plays out. If you’ve been in since $14 OILU, might be wise to take some profits and watch closely. You’ll be able to tell if its going to rally or dump but only if you watch closely ;)
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Actually 20% if you got in sub-$14Note
Depending on your style & risk tolerance, you may want to consider shaving off some holdings here and let the rest run. Personally, USOIL looks like it has some underrated strength. I would not be surprised to see a surge to $61 or $69 in USOIl. OILU would track that very nicely. A break past $70 would be incredibly bullish.
Oil can sell-off rather severely and unexpectedly, especially if we get overbought and cant surpass key resistance. $48 is a possibility. $38-$33 possible during 2020.
If inflation ticks up faster than most expect, Oil could outperform.
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OILU is currently up 33% in 7 weeks since I posted this chart.Trade active
USOIL is nearing a substantive move. Most likely we will get:
1. Selloff towards 57-56 before chopping sideways and rolling over
2. A quick touch of $60-$61 before getting slammed
3. A surprise surge that opens up the upper 60s.
A surprise fundamental event could be the thing to shoot us to $64-$69.
Barring such an event, I think a move to $57 and $53, from present prices of $59, is the most likely outcome.
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this rally has been very impressive. $65 incomingNote
$65 USOIL, thats about $24-$25 OILUNote
sorry thats off base, I'm not sure exactly but it could be around $33 OILUNote
either this is a corrective countertrend, which means a hammer should be coming in any day now. OR this is a sign of rising inflation and rising commodities, which could mean 2020 is in store for higher oil pricesNote
I believe now is time to be buying OILU again. The market has gifted you cheap prices once againNote
This is a buying opportunity
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