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Have You A "Worry" Stock? Not With USO and Oil

Posted On : December 21st, 2011 | Updated On : December 21st, 2011

Get rid of the "worry" stock and replace it with something that has the potential to zoom upward. I'm talking about USO and Oil. I don't often look at ETFs, but I find USO to be very interesting right now. This ETF, United States Oil, closely tracks the price of crude oil in New York. This market appears to have completed a formation that could have great profit opportunities in the near term. USO is currently trading at $32.56 It gave a monthly buy triangle last week. This is the first buy signal since April of 2008. How high can USO go? If we use Fibonacci retracements, a 23.6% retracement would put USO at $45.21. A 38.2% retracement would put USO at $59.33. Now you do need to exercise caution here by setting a tight stop loss. What makes this a risky play is that inventory levels of crude oil are rising because global demand has dropped off so much due to the global recession. Many analysts feel that a bubble has formed in oil over the last month as fundamentally, the current price of oil can not be justified. In my new video below, I explain in detail a strategy that I am using to approach this market.

Posted in : stock trading
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