USO 120 minute Nov 18th
USO (crude oil ETF) was added as both a semi-aggressive long entry on Thursday with the expectation of an upside breakout of this bullish falling wedge pattern as well as a Long Trade Setup with a more conventional entry to be triggered on an upside breakout of the wedge. Since Thursday, prices have continued to drift slightly lower (about 50 cents) within the wedge but remain well within the typical breakout range of a bullish falling wedge pattern. As discussed in the recent Crude Oil, Coal & US dollar video, the success of this trade hinges largely on a reversal in the dollar.
The specific price targets (suggested sell levels) have been added to this updated 120-minute chart of USO. Price targets for long-side trades are set slightly below the actual resistance level (i.e.- where a reaction is likely) in order to help increase the odds of missing a fill, should the trade reverse just shy of resistance. Suggested stops would be based on at least a 3:1 R/R from the average entry price to the preferred price target(s).