Opportunity To Short USO When price Arrive to the supply zone we consider to short this market make sure follow me I will update the trading idea once we get close to the zone or we hit it .
USO
The uptrend resumes......after a few days of consolidation around the 61.8 retracement level of the October to December 2018 decline.
Short USOThe chart of USO looks much overbought..
Buy Zone: $13.32 to $13.59
Stop loss: daily clsoe above $14
Target: $12.25 to $12.04
You can Buy DWT , SCO or any others that have Inverse relation with USO or USOIL
Update CRUDE OIL: 7.238M barrel build - CAUTION... to finish after I was rudely cut off, options returns are a bell curve based on duration, you never want to hold them until expiry unless you are planning on taking delivery!
(*Note to tradingview - performance should increase for paid subscriptions)
Play the Rebound on Oil and GasolineStory : For a number of highly-discussed ab debated reasons, that do not need to be presented here, petrochemicals have seen a substantial devaluation over the course of the last 2 months. While the view from a macro-perspective remains bearish, a rebound from the recent sharp downturn would not a surprise.
Note : The trades presented offer a 1 to 1.75-2.0 risk/reward and are positions taken in my portfolio.
Update CHK: Ascending triangle ready to breakout!Section 232 Uranium tariffs this month is likely to be a driver on the natural gas price ultimately pushing Chesapeake higher!
Update USOIL: API inventory BUILD shows signs of a topAPI data released at 4.30pm EST on Tuesday show a "surprise" build, however, with expected weakness in hard data there should be no surprises. EIA data will either confirm or deny API's release.
Update USOIL: Expect a reversal in Crude Oil around this areaCrude has reached and surpassed our expected target of $61.60 for a reversal. Look for weakness into the close of day today.
Oil drop$uso $uwt $dwt $usoil
Took a short position yesterday (3-21) based on this broadening pattern. It will probably spike up a few times but I suspect it's going down down
Update USOIL: Look for a reversal here...We can see slight higher highs from here, however, I expect to see a reversal somewhere between the current price and $61.60
Natural Gas low in place, 20% upside from here!With section 232 Uranium tariffs around the corner, natural gas is lining up perfectly for an event-driven opportunity to get long!
Update USOIL: $61.50 first, then $52Commodities are typically the last asset to peak during a cycle. We typically interest rates peak first, a couple of months later that followed by equities and a couple of months after equities we see commodities peak. Commodities such as crude oil, are part of the contraction phase in the cycle, the higher the price rises it begins to acts as a tax on consumers and that begins the early recession phase. For that reason, I have marked this rally in crude as a wave A of a bigger corrective pattern.
Short Oil @ 59.60 - 60.00 area Fib 0.50 line. Oil has had a nice bounce from the Jan 2019 lows, and I believe it's time for a little pullback. This 59.60 - 60.00 area is an important pivot point, exactly sitting at the Fib 0.50 line, which will prove very hard to be broken. We consolidated in this region back in 2015 and fell hard. Remember that we are in a secular bear market, and this up movement from the Jan lows could be seen as a bear flag. First price target is 55.5, and then a second, a little aggressive price target would be 50.5. Given that the general equity market fundamentals point to a pull-back, shorting oil will be high probabilty trade. Enjoy the profits!!!
Update CHK: Position is hedge but performing VERY wellChesapeake is likely to see some real buying into April if section 232 tariffs on Uranium are passed (high probability)
Update USOIL: I bought put on Crude Oil65% of crude oil demand is derived from gasoline, with economic conditions weakening we are now switching from supply side issues to potentially demand-side issues. Watch for lower levels of demand for Crude over the coming weeks.
Waiting for a short on XOP using DRIP. long time coming.XOP has been bullish and grinding higher.
Playing consolidation at lower prices via options and DRIP etf.
UPDATE: Why is USOIL rallying?Would love to hear your perspective in the comments sections below!
Have a wonderful day!
Update: View of Crude Oil remains, buying opportunity at $48.60Demand remains consistent at 1.5% YoY, the decline was caused entirely by supply-side shocks and record production. From the lows, late last year OPEC has talked up production cuts which would ultimately be the catalyst to rally higher.
This is a bullish market, shorting counter-trend is risky so make sure you are managing the risk of the position BEFORE you place your trade.
I won't be shorting Oil, but I will be a buyer at $48.60 provided all the planets continue to align.
