USO short trde opportunity today 4/2/14

2 Nis 2015

WTI futures are weak heading into the market open. Expect WTI to regain some of the losses up until the market open, but will sell off the rest of the trading day. Trading the ETF USO, you have a nice Gartly pattern forming with support at the 16.50 level. This has good confirmation with the 707 retracements in the pattern. You can sell the USO, with a stop above 17.88 and a target of 16.40. Assuming an entry at 17.30 your risk / reward would be approximately 2.55 to 1.