By InTheMoneyStocks.com on January 27th, 2010 11:36am Eastern Time
As a Chief Market Strategist at InTheMoneyStocks I study the markets for close to 15 hours a day. Price, pattern and time are my holy book as I recognize master setups and alert my clients to them. Today I bring you a new call. I am giving oil an upside bias for the near term. Fundamentals along with technicals are telling me there will be a bounce. It looks like it already may have begun today.
The U.S. OIL FUND ETF (NYSEArca: USO) has sold off from my top call at $41.20. That sell off was harsh and beautiful taking the USO down to the 200ma on the daily chart. With the market correcting, and the dollar strong, people are wondering if oil is headed lower. Near term I say no. Oil will see a bounce off these levels and move higher to a target on the USO of $38.20. This is what is called a swing trade. A short term trade held over the course of a few days for profit.
My premium members received their alert this morning and were advised to look at not only USO but also Ultra DJ-AIG Crude Oil ProShares (NYSEArca: UCO). This is a 2x long ETF for oil. Generally speaking, you get 2x the risk but 2x the reward. In addition, Exxon Mobile Cp (NYSE: XOM) appears to be ready for a short term swing trade bounce as well off of the $65.00 level.
Based on key fundamental oversold conditions and major technical supports, I am issuing an upside bias alert on oil. Live, Learn, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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