Oil is the story of the day

It seems that oil wants to bounce today. It has been widely oversold and we have been overwhelmed with negative analysis about oil over the weekend.

This is the best situation for committed traders to trigger a shorts covering move.


Pascal

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SCO was drawing the same pattern as what we observed in March and January 2015, when we had epic reversals.

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Pascal: what should be the exit strategy for the SCO trade?

Tnx in advance.

Hi Ilona,


The most important is that the trade does not revert tomorrow. This means that we need to see a few days of higher prices in oil.

So looking at today's situation, I would put a stop at the high of today ($102.2), but I am ready to increase the position at around $98. If oil moves higher, I will try to trail the stop.



Pascal