Hubert Senters here.
This is an introduction video, I’m travelling. I’ll be in Vegas this week. And Mark Helweg is going to be filling in for me so I’m just letting you know so you’re not surprised. Without further ado I’m going to turn it over to Mark. Mark take it away. Thank you Hubert.
And this will be my final video this week covering for Hubert while he is away in Las Vegas at Traders Convention this week. So now looking at crude oil and USO, this is an interesting potential set-up here and possibly a very low risk entry longer term.
So what I’m looking at here is the fact that we have had a fairly strong rally through the end of 2018. Then we had this final washout move. This is on a monthly chart of crude oil. And this really runs out the weekend at longs. We’ve had a bounce back here. We could be looking at a high or low in the monthly chart.
So if that’s the case there is a real possibility that we are looking at crude oil putting in a meaningful bottom right here a higher low. And if that’s the case I think at some point in time we could be looking at a bull market in crude.
But I don’t believe the risk is very strong from current levels and you could put your stop at the low of November which is at I believe $11.44 so not too far away about 44 cents away from where we closed yesterday and actually I think will open a little bit weaker on the open today.
So should give you an opportunity if you’re interested in taking advantage of a potential long term strategic by taking advantage of a high or low on the monthly chart in crude oil. So keep an eye on that. Keep an eye on USO on the stock side of things and then you also could consider a longer term option place here as well.
Thanks for watching everyone. And have a great weekend.