Wednesday, July 25, 2012

S&P 500 & Crude Oil Reversal Higher

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ITZ takes a look at two cahrts this morning, the S&P500 8 hour & the NYMEX crude oil. Apple missed estimated earnings and is selling off, but BA & CAT beat, bullish for the $SPX.
The S&P500 has been in an ascending channel with 1350 & 1330 support trendlines. The chart looks bullish near term and ITZ like trading via Proshares UPRO around $44.50.

click chart to expand image

WTI Crude Oil sold off the last several weeks and has set up and Inverted Head & Shoulders pattern. ITZ was looking for a throwback to the neckline around $89, we got $88. Lets see if a rally in the S&P500 can push oil higher. Trade WTI crude oil via Proshares UCO around $29.50

See Update On Position Below In Comments


itzstockchartz said...

Note~ ITZ sold 1/2 position UCO on 7/20 @ $32.50...continues to hold 1/2 position entry levels 1/4 positions from 5/31 $27.40 & 6/1 $27.40.
Yesterday API reporys a 1.3M barrel build EIA comes out @ 10:30 today.
Looking to add a 1/4 position here @ $29.50. Maintain STOP @ $29

As fo UPRO buying 1/2 position on open $72.50 stop $70

Also adding to Apple remaining 1/2 position @ $572. other entry levels were 1/4 @ $559 on 4/24; $539 on 5/17 & $588 on 7/23

itzstockchartz said...

Well EIA report of a build in crude 2.72M barrels was even more than API's +1.3M yesterday. Was watching $29.50 level on this report...UCO soldoff and broke through $29 stop, exit 1/2 position average cost $27.35...with +1.65 6% gain. Looking to re-enter UCO...stay tuned