Wednesday, October 3, 2012

Crude Oil Sell Off - Opportunity To Get Long UCO

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ITZ has been suggesting Proshares Ultra Crude Oil (UCO) for the last 3 weeks. Entering 1/4 positions on Sept 19th @ $32 & $31, on Sept 26th @ $30 & today @ $29.60 (Twitter alert) those who follow blog would've gotten in @ $29. The ETF closed today @ $28.48.

WTI Crude Oil took a hit as technicals & news out of China slowing down. ITZ has noted since crude broke below an ascending channel on an 8 hour chart that Fibonacci Retracements would be tested. June/Sept $86.18 = 61.8%.... we may see that soon.

In the chart below ITZ uses the GOR 'Gold/Oil Ratio' against the Proshares long oil etf UCO. On a weekly chart, when the Stochastics & RSI rise above 80 & reverse lower it signals BUY UCO. This is not a pinpoint signal and by no means the only indicator we track, but it has been fairly accurate on both long & short positions in oil.


itzstockchartz said...

Suggest placing stop on 1/2 position @ $30 against $29.60 & $30 entry levels

itzstockchartz said...

Raise STOP on 1/2 position to $30.50

itzstockchartz said...

Stopped @ $3.30 on open against $30 & $29.60 entry levels for $0.50 +1.7%
FOLLOW TWITTER for upto date trades

itzstockchartz said...

*$30.30 not $3.30

Anonymous said...

Is Oil breaking down here? At what point would you buy UCO again? - Thanks