Short term idea on USOIL(1-2 DAYS) buying put options
This was a great week for the US economy and the oil market. The OPEC+ agreement, the surprise numbers in employment in the US and the flattening of the Covid-19 curve of infected people really gave spectacular returns to bulls.
Fundamentals: The 40$ price is very crucial for the producers as it is the breakeven point of Shale producers. Above that new oil rigs should open up.
TA: Bulls should take profits by monday, as we are in overbought territory (RSI>70). Plus we are close to a bearish divergence.
Time horizon: 1 day ideally as we are going against the trend.
I recommend the use of options because of the tensions between US and China. If escalated, we may see a significant gap upwards. Put options have an upfront premium payment and we know the risk beforehand.
Disclaimer: 1) Always do your own analysis before trading.
2) If you are not familiar with options DO NOT follow this idea.
Fundamentals: The 40$ price is very crucial for the producers as it is the breakeven point of Shale producers. Above that new oil rigs should open up.
TA: Bulls should take profits by monday, as we are in overbought territory (RSI>70). Plus we are close to a bearish divergence.
Time horizon: 1 day ideally as we are going against the trend.
I recommend the use of options because of the tensions between US and China. If escalated, we may see a significant gap upwards. Put options have an upfront premium payment and we know the risk beforehand.
Disclaimer: 1) Always do your own analysis before trading.
2) If you are not familiar with options DO NOT follow this idea.
Trade fermée manuellement
Close @38.37 manually with a small profit. I expect a major bull market this summer.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.