/CL (crude oil futures) have broken down below the 60-minute bearish rising wedge pattern while USO has run into significant resistance on the daily time frame. This breakdown on /CL, as well as the fact USO had run into resistance, provides an objective short entry on either (or a long on DWT, 3x bearish crude ETN). However, due to the positive correlation between the equity market & crude prices in recent months, I am only passing this along as an unofficial trade idea at this time although I will say that I do like this trade and crude can most certainly start to fall, even if the equity market holds up for a while.
CL 60-min April 3rd
Near-term targets for /CL and the longer-term swing targets on USO are indicated by the arrows with the next sell signals to come on breaks below those first two targets/support levels on /CL & then the primary uptrend line/bottom of the wedge on the USO daily chart. Should I decide to add USO or DWT as official trade ideas, the trade parameters such as exact price targets*, suggested stop & beta-adjust position size will follow.
USO daily April 3rd
*Unofficial trades, such as this one, often just list the actual support level in which a reaction is likely. Best to set you BTC limit order slightly above the resistance level(s) that you are targeting.