Wednesday, August 31, 2011

Trade Idea DTO (long)

In the sprit of the last update on USO DTO s looking like the kind of trade I like, a high probability/low risk trade/ and timely.

 Here's the hourly chart and if you understood my market expectations for multiple trends/timeframes, then you'll understand that the market can't go very far without energy. Thus the 60 min chart of the Double Short Crude Oil-DTO, doesn't look so hot and that's what I would expect, but if you understand my expectations for the coming days, then the charts below do make sense.

 The 30 min chart is just showing signs now of a relative positive divergence

 Look at the leading divergence in DTO today alone and remember what USO looked like.

 The 10 min chart is also in a spectacular leading positive divergence, indicating heavy accumulation and it s doing so in an area of flat/range bound trade, exactly where it often does.

 The 5 min chart is in a leading positive divergence in the flat range as well.

And the 1 min chart, speaks for itself. I like DTO long right here.

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