As of now, the USO/UTWI short trade still looks fine from a technical perspective as prices are still trading below the bearish rising wedge pattern although I do have to say that I’m a bit concerned regarding the lack of impulsive selling such as we normally see immediately following the breakdown of a rising wedge pattern. USO could make a run at a back-test of the wedge from below & if so, a back-test could come in less than 2% above current levels or USO could backtest at a higher level, possibly above the suggested stop of any move above 12.35. I don’t plan to modify the stop, either lower or higher & plan to stick with the original trading plan on this one for now.
USO 60 minute June 6th