/CL (crude oil futures) are now testing the 52.20 resistance level with a solid break and/or 60-minute close above that level likely to open the door to the next leg up to the 53.36 price target & quite likely the 54.75ish target as well.

CL 60m Feb 14th

CL 60m Feb 14th


Likewise, the USO (crude oil ETN) has just hit the first price target (T1 at 10.98) in pre-market trading although only regular-session trades are used for the stops & price targets on the official trades. As the case for a bottom in crude continues to firm up, I favor a continued rally up to the 2nd & 3rd targets in the coming days/weeks & possibly beyond, assuming that /CL can take out the 52.20 R level it is currently testing. As I like to say; Resistance is resistance until & unless taken out so the best best for those looking to add to or initiate a long position in crude would be to wait for these resistance levels in /CL & USO to be taken out. One final consideration is that I’m still leaning towards at least a minor correction in the equity markets based on the recent breakdowns on the 60-minute charts. Should that occur, it may provide a headwind for crude oil. As such, a case can be made for either taking partial or full profits here are resistance/T1 or raising stops to protect profits.
USO 60m Feb 14th

USO 60m Feb 14th


For those trading UWT (3x bullish crude ETN) the 60-minute chart below has some potential unadjusted price targets. Unadjusted targets are the actual resistance levels were a reaction is likely upon the initial tag from below. Best to set your sell limit order(s) slightly below the actual resistance level(s) that you are targeting on a trade in order to minimize the chance of missing a fill, should the sellers step in a bit early. Also, it is best to align your entries & exits with the support & resistance levels on crude futures and/or the comparable 1x (non-leverage) ETF/ETN when trading leveraged ETFs/ETNs as the decay can often lead to distortions in the chart.
UWT 60m Feb 14th

UWT 60m Feb 14th

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