SCO Ultrashort Oil Daily Chart Positive Divergence Setting Up

SCO ultrashort oil ETF daily chart is setting up with positive divergence. Playing oil is a speculative trade, even more so than normal, considering all the unrest in the Middle East. Big selling volume in the candles hints at capitulation which means the oil price is getting too big for its britches. The consensus wants to see that $120 oil price which of course means it probably will not happen. All that said, gap down moves like this need a little time to settle so the yellow circle would target a potential entry in the 45 to 48 area.

That should set things up for a bounce and an extended move up with SCO for the weeks ahead. The weekly chart confirms this as well so once we work thru some more excitement in the coming days and tease $100 oil another time, oil price should pull back down towards the low 80's moving forward, definitely a contrarian view considering all the oil bulls out there. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.