In the trader tip video below, Chris explores an opportunity appearing on the Crude Oil ETF USO chart in the energy sector.
Looking at the daily chart, the 200-day moving average is showing as a major level of support since early 2021. Narrowing in on the shorter-term price action, crude oil has gone through a strong reversal pattern. A bull flag has formed that is pointing to higher prices. Using the Fibonacci extension, we can gauge that a 10% move to the upside is possible for USO ETF.
This tight pattern and potential upside target could play out over the next few trading session, or it could take a couple of weeks to unfold.
Subscribers: Please let us know what you would like to learn, and we will add it to the roster of our weekly Technical Trader Tips!
Non-subscribers: Please enjoy these micro-lessons as a way to further your education and understanding of how a technical trader…well…trades!
Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
