On January 17th of this year, I published a post suggesting it might be time to take a countertrend trade in oil via USO. The simple setup I was looking for was a break of the previous week’s high of $18.61.
That didn’t happen but, astute traders would have simply trailed their buy stops down and ultimately been taken into a long trade at $18.07 with a stop just below $16.30.
That trade would have been stopped out last week. However, it would have been stopped out just as price was in the process of forming a new trigger bar for a long setup on the weekly chart with an entry level just above $16.80.
That trade triggered on Monday.
While it’s had a nice move already, if I am right about this bounce, there is plenty more in store.
I like swing entries here with a stop just below $15.61. Be sure to position size appropriately.
In terms of an initial target, I like the $27.50 area.
Hope it helps.