Short covering on expiration could be a great short entry
Today at 2:30 many oil futures traders will be making moves to cover short positions that expire today. This may lead to an uptick in oil prices but do not be confused by this soft bottom action. While it looks to be rallying at a bottom, this may just be elusive as the supply picture is still overwhelmingly a surplus.
We may get a near-term bounce at these levels, but picking up another speculative short position is worthwhile as we could see oil roll over again. A quick stop/loss to use is the .786 Fibonacci line (at 46.43, in green). If we get a close above, cover your short.
You can effectively short oil with USO puts or UWTI (3x Bear).
We strongly recommend you enter this trade if you have time and proper understanding of the risks involved.
Cheers,
The Enhancing Capital Team
We may get a near-term bounce at these levels, but picking up another speculative short position is worthwhile as we could see oil roll over again. A quick stop/loss to use is the .786 Fibonacci line (at 46.43, in green). If we get a close above, cover your short.
You can effectively short oil with USO puts or UWTI (3x Bear).
We strongly recommend you enter this trade if you have time and proper understanding of the risks involved.
Cheers,
The Enhancing Capital Team
