Oil Poised To Move Soon

Oil may be setting up for an impulse move in the very near future. The commodity has refused to give up much ground recently, despite a bounce in the US Dollar over the past two weeks. I like to trade the double crude ETF $UCO  for short term moves as it is more volatile than $USO and not as crazy as the crude contract. In looking at the chart below, it is clear that volatility and volume has been contracting since the February breakout in oil. This is healthy behavior and $UCO has managed to remain above its breakout point near 44 the entire time. I’m not sure if oil will take off after the fed statement this week or not, but it is poised for a strong move soon.

 

ProShares Ultra DJ-UBS Crude Oil(NYSEARCA:UCO)

Good Trading,

 

Joey

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