Clicky

USO UWTI to gap above resistance

With UWTI currently trading at 7.55 in pre-market, an opening gap above both R1 & R2 is likely. If so, that will also trigger the bullish cross on the 13/33-ema that I was looking for. Therefore, unless this pre-market rally in crude is faded after the open, the odds for a move up to at least the 8.15 levels will increase substantially today.

UWTI 60-minute Nov 24th

UWTI 60-minute Nov 24th

0
Nov 24, 2015 9:23am|Categories: Completed Trades - Long, Gold & Commodities|Tags: , , |4 Comments

4 Comments

  1. SmartPivots November 24, 2015 9:49 am at 9:49 am

    Yep, It broke, 7.36 and Nov 16 high. Its definitely on a run. Who says you can’t trade pre Thanksgiving, just don’t over commit.

    0

  2. SmartPivots November 24, 2015 10:01 am at 10:01 am

    USDCAD also moving in correlation but has momentarily stalled at S1 daily pivot.

    0

  3. Wiseguy November 24, 2015 12:38 pm at 12:38 pm

    Question Randy, does TA really matter on a ETN like UWTI? wouldn’t it TA make more sense on the chart of crude for example? I’ve always had some confusion about that.

    0

  4. rsotc November 24, 2015 2:26 pm at 2:26 pm

    @wiseguy , TA certainly applies to the leveraged ETFs although due to the price decay suffered over time, I typically use the 1x (non-leveraged) ETFs for my technical analysis (i.e.- drawing trendlines, horizontal support/resistance, chart patterns, etc…) when trading the 2x or 3x leveraged ETF. With that being said, that decay is minimal on very short-term swing trades lasting hours, days or maybe even a week or so. Therefore, in some cases, such as with this recent UWTI trade, I’ll use the chart of the leveraged ETF which is almost always based off the intraday charts as it is meant to be a relatively short swing trade, unlike my typical swing trades which can often last several weeks to several months.
    Ideally, when trading a leveraged ETF like UWTI, you want to also watch the charts of CL (crude futures) along with the uber-liquid USO (1x crude etf). For example, suppose that UWTI starts approaching that 8.15 resistance area while I also notice a resistance level or trendline on CL or USO that comes around the same level, I’ll probably close the position at the FIRST key resistance on any of those crude trading vehicles, as that’s where the sellers might step in. FWIW, I’m currently leaning towards a price target of 8.00, possibly slightly below on UWTI.

    0

Comments are closed.