Trade Idea-ERY (Long)

Honestly, USO hasn't shown much clarity whatsoever, except for the longer term charts. I have maintained my view that USO would pullback, likely be accumulated and then make a real breakout through the flag, something it has failed to do. In the meantime, ERY has much more clarity then USO (inverse 3x leveraged short on Energy). I like the idea of a reasonable size position in ERY for at least a swing trade and then we'll see what happens from there.

 We've seen these false breakdown all too often before a reversal, they always target a well defined area that technical traders will identify with.

 3C hourly on the breakdown below support suggests the move was a shakeout/head fake

 As does the 30 min.

Since the hourly Trend Channel has worked well with swing moves, I'd consider using it as a trailing stop.