The DWT (3x Inverse Crude ETN) short-term Swing Trade was stopped out on 60-min candlestick close (30.73) below 30.90 for a loss of 4% on Tuesday after the Saudi + OPEC joint announcements of production cuts foiled the falling wedge breakout. As DWT gapped down below the stop trigger & printed the first 60-minute candlestick close at 30.73, that is the price used in calculating the loss on this trade. News can often trump the charts & this immediate reaction to the announcement of production cuts was unarguably the catalyst for that sudden & swift rally in crude oil. [...]
The following is an update to the DWT (3x Bearish Crude ETN) swing trade idea along with some additional commentary & the beta-adjusted position size.
DWT (3x Inverse/Bearish Crude Oil ETN) will trigger an objective long entry on a break above 32.00 which will be a breakout above this 60-minute falling wedge & the R1 resistance level at 31.85. Member @getitriight had pointed out some bearish developments on the charts of /CL (crude futures) & posted shorting crude via DWT today (thanks for the heads up!). The sole price target is T1 at 35.96 with a suggested stop on a 60-minute candlestick close below 30.90. DWT 60-minute July 20th While I don't often add the 3x leverage ETFs or ETNs as swing trade ideas [...]