ProShares Ultra Bloomberg Crude Oil 2X ETF (UCO)

[TraderRich]

It's not my style to post definitively what is going to happen to your position in SCO, but I'll tell you what I'm perceiving here... and you're probably not going to like it...

First, for SCO, watch for resistance at 55.75 - 55.85. If it moves up to that level and won't go through it and get support there, I would be concerned.

Secondly, on the oil futures chart, if you remember my past posts about an "adam & eve bottom", well, there's now a larger one and it's very pretty. If this one plays out the breakout will occur at 18.26 and has a measured move target of... gulp... $26.30. It will likely hit some resistance at around 21.40, but honestly, as a guy who traded oil futures for a decade, I'm drooling over this formation and how good it looks so my bias is without question long oil right now. What would change that bias is if the crude futures price fell to $15 and couldn't get back above that price and find support. Otherwise my friend, I'm sorry for your sake I'm definitely looking to be long oil at this moment.

The chart shows the adam & eve formation with the breakout line at 18.26.