Falling Wedge on USOif we hold this low, we will probably get a revisit to the top of the wedge and then possible movement towards a breakout of the wedge... if this bottom trendline holds I am strongly long here
USO trade ideas
Possible USO recoveryUSO has taken a huge hit after the Russia and OPEC+ debacle. Since then, countries are making an effort to cut production to bring back oil.
Since then, the RSI has been diverging towards the upside and we are now in a squeeze with upward momentum. We have been buying accumulating CALLS for June. $4, $5, and $6 strikes.
$USO Cup & Handle - Nearing Breakout (Short Term Trade)$USO Cup & Handle - Nearing Breakout (Short Term Trade)
4/17 Expiration Calls dirt cheap right now.
$4.00 strike going for $0.33 - essentially baking in little to no movement by end of day tomorrow
SUPPORT we've been waiting for? BULLISHDouble bottom and strong support at 4.22. Bounce incoming? I expect a test back up to $5 soon.
USO bounce time? Grabbed some call options here.. looking for some gainz in the next week to grab some profit.
LONG USOExpecting bounce from extremely oversold weekly and daily levels. If stop breached, be prepared to catch new daily reversal on lower levels with a tight stop.
USO long Its hitting A VERY strong support zone with a mac-d crossover and oversold. if it does not break trend buy.
Will support hold? BULLISHvery important level right here, this can be the beginning for some upside this week.
*not financial adviser
High potential profits awaiting for youMany new traders , even some experienced ones still make the cardinal sins of trading. They are eager to find out the holy grail of trading, believing it is the next indicator in town - the more sophisticated , the better it is.
Sorry, let me let the cat out of the bag. If you are the one selling the indicators, no matter what the price tag is, does it not tell you that you can make much more money selling it than to use it to make money for yourself ?
It is also not about being able to spot the right trading opportunity as in catching the lowest of low and highest of high. This timing of the market can be a hair pulling exercise.
Like in this case, for now , it appears that the bottom is in. I mean, it is already below 4, how far lower can it gets ? See example here . See how many times it breaks out from the bearish trend line only to return below it not once but several times.
That is my point - Say it goes to 1 dollar and you long 5.37, your paper loss is 4.37 for 1 contract.
Can you afford to lose that ? If yes, read on. Alternatively, if this is indeed the bottom (which we will know much later) and the price shoots up to 8.50, then you are in 3 dollars profit.
But, if you want to hold this for a much longer term and the price enjoys a nice bull run to say 11 dollars (conservatively), then your risk is only 4.47 vs a potential gain of 6 dollars.
As such, such kind of trade opportunity when it present to you, you must grab it as the risk is low and the rewards are much higher.
Over time, if you can spot 1 -2 of such trading opportunities in a month or so, you are going to make some good profits.
Hope this explanation helps in planning your trades.
USO RecoveryInverted H&S forming with following supporting evidence of recovery:
- Increasing volume at the apex on the right shoulder. This was when OPEC+ announced cuts to production. Scared sellers took advantage of the pump to $5.8 to unload, but momentum has stayed strong.
- This past week has seen the first strong flip from sellers to buyers being in control since the drop started in early January.
- RSI has been diverging since the start of the inverted H&S pattern.
- We have now crossed the middle BB line and we will likely start following upper BB line up.
Rising Channel forming USO BULLISHUSO establishing the higher low on the hourly and the the weekly. Next week should be a good week.
*Not financial adviser
uso longentered long position based on 123 rule, break out down trend and former high at 5.19
entered at 5.23
stop loss 5.15
target 5.45, 6.0
Blood OilI think by end of day we will see a decent decline in oil. USO will test 4.5 by EOD as nerves grow on a OPEC deal. I don't believe a favorable deal will be achieved between Saudi, Russia, & US on Thursday, which fill further plummet oil. Saudi & Russia are looking to claw back market share from the US and want to see US shale belly up.
$USO Sits at the Crossroads Into Thursday's OPEC MeetingUSO is pinned in a zone that equates to $30 and $20 in WTI Crude Oil futures as we approach Thursday's emergency OPEC meeting -- if it even happens. The Russians and Saudis need the US to find some way to participate in production cuts. Otherwise, that $20 level will likely be back under pressure.
$USO Enters the Week on Dangerous Levels of HopeUSO has been beset by terrible obstacles as the OPEC-plus structure breaks down, and Russia and Saudi Arabia look for ways to get the US into the global oil policy fold.
The "Bounce of Hope" is up against tough odds here, and the COVID-19 lockdown theme continues to destroy demand. Be wary of hope.
