Climb in UltraShort Crude ETF

From a near-term perspective, the August advance in the UltraShort DJ-UBS Crude Oil ProShares (NYSE: SCO) has climbed sharply to and actually pierced above its May-August down trendline today at 14.85/90. Perhaps more impressive is that the price structure is consolidating (so far) above the trendline, which is a potentially bullish sign of still more upside directly ahead, that projects to 15.25, and then 16.25/50 thereafter.

Should such strength emerge without much if any pullback, then the intermediate-term picture will morph increasingly into a multi-month accumulation (base) pattern that is propelling prices towards a confrontation with significant resistance at 17.50-18.00. At this juncture, let's not be surprised if a bit of profit-taking occurs that corrects the near-vertical August upmove into the 14.60/20 area prior to the resumption of strength that propels the SCO considerably higher.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!