The USO daily chart has a Descending Triangle formation forming. The Oil Fund has found support at the 38.2% retracement level at $11.06. There have also been a series of lower highs with last resistance at $11.65. The trade is to set a buy order at $11.70, and a one cancels the other sell order at $11.00. If the breakout is up, first resistance is at $12.00, while a breakout down would have first support at the 50% retracement level ($10.77).
Showing posts with label Descending triangle formation. Show all posts
Showing posts with label Descending triangle formation. Show all posts
Monday, February 20, 2017
Trade 3: Descending Triangle in USO daily chart
The USO daily chart has a Descending Triangle formation forming. The Oil Fund has found support at the 38.2% retracement level at $11.06. There have also been a series of lower highs with last resistance at $11.65. The trade is to set a buy order at $11.70, and a one cancels the other sell order at $11.00. If the breakout is up, first resistance is at $12.00, while a breakout down would have first support at the 50% retracement level ($10.77).
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