The longer this week’s gap higher in crude oil, portrayed by the USO ETF on the daily and weekly timeframes, respectively below, does not get filled the more likely I am inclined to view it as a bullish breakaway gaol which will not get filled going forward.
The daily chart shows the gap higher this week. And, keep in mind, another reason which has me continuing to lean bullish crude is that we have seen so many false breakouts over the past few years that it is easy to believe we will see a fade once the Iraq panic is lifted.
However, it is worth noting that crude was already set-up technically before the news hit, with the weekly symmetrical triangle I outlined on the second chart.
That said, I will likely trade around my UCO long position so as to take advantage of the surges and natural volatility. Still, I am looking for a reason to keep a core position, and an unfilled gap is more than sufficient.
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agreed, agreed and agreed!
Haha, thanks comet.