After a strong rally in early-June, crude oil has since cooled off for some more backing and filling.
On the updated daily chart for the ETF, below, you will still note that black gold has been a series of higher lows throughout 2014, quite an impressive feat indeed.
In order for the bullish action to continue into the rest of the summer, today’s bullish engulfing candle now likely needs to prove true as marking a bottom for this pullback.
We traded UCO as a levered long crude instrument previously with a good entry on my core position. But once crude began to gap-fill lower it was time to step aside and reassess.
Aggressive traders can use today’s lows as a good stop-loss.
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Awesome pic Chess! Basement cat on the prowl.