SCO Daily Chart

SCO, the oil inverse ETF, receives the rocket launch forecasted. Remember the oil COT and candlestick charts were calling for a top in oil so SCO was set to jump. The indicators displayed universal positive divergence. The RSI and stoch's were coming off oversold levels. Price makes a double bottom. All these indications are bullish and voila, the possie d rocket fuel launches the SCO sharply higher.

Keystone is out of SCO; no use to get greedy past the 50-day MA at 24.05. Note the long and strong indicators so SCO will likely make higher highs in this daily time frame. This gels together with the US dollar chart that wants to see a bit  more lift. The stronger dollar slaps oil, gold and other commodities lower.

SCO should come back to kiss the 50 at 24.05. When it does, and is making its bounce or die decision, a bounce means the higher highs are on the way. A failure below the 50-day and price will likely drop to the 20-day at 21.62 which also needs back kissed.

Note the strong price support from mid-January at 22-ish. So perhaps SCO can be reloaded if it drops into the 21.62-24.05 area. The weekly chart is favorable to more up which means oil may stay soggy into spring time, also, the SCO will likely migrate towards and into that 26-30 congestion area (56-58 for WTIC crude oil; the 200-week MA support for oil is 56.28). This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.