Thursday morning

USO: The trade is on

If you liked the chart/trading plan I posted Wednesday morning then you should take that initial 1/4 position today (if you did not buy into the close yesterday.)  I recommend a stop at 33.32.  (This is just under the low that printed Tuesday and y'all know I never pick round numbers for entry or exit.)  Below is the trade I posted yesterday.


The Trade
I may not get in but this is what I would plan:  Take a 1/4 position on the next open candle. I would like to buy into the close on that day.  My stop would be about 20 cents below the entry.  I would look to add another 1/2 position on the first open green candle and fill the last 1/4 on a bounce from an intra-day dip.

The target is a test of the neckline and I would sell into that level.  While the 200 day sma has not been particularly relevant the price did fall below and immediately trade back above it so don't be surprised if it makes a mirror image of that action on the way up.  If the position is not already full then the bounce would be a good spot to buy the last piece.  

Edit: Remember to pay attention to volume. If it is dropping while price is rising you could get left holding the bag if you buy then.  If volume is average or above then rising price is your friend.