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    CFD: Ideas You Can Trade - USOil Downside Support on 50.50

    USOil: Bearish pressure likely to re-test downside support on July 7th Low over 50.00 

    The medium term daily candle chart below shows the price history of USOil - a Contract for Difference (CFD) that aims to track the underlying spot price of US Crude Oil. This CFD is trading near 50.74 around time of publication - and lower for the 3rd straight day.

    Last time USOil was reviewed in Ideas You Can Trade was on July 6th, after the trend had turned quickly bearish following the lost-support above 58.00 which had held the market in a sideways range for the last few months.

    Since that last post - a lower low was reached the next day near 50.55, and has since bounced higher but is again losing momentum from the upside. With the downside support over 50.00 likely to be tested again as the overall trend has turned bearish, this could be a key level to watch before a large move follows - either towards 40.00 or back towards 60.00 in the short term. 

    For now the former seems more likely, and the imminent support area of 50.50 should be tested again in the immediate term. 

    Below are examples of how to trade a bearish continuation or a bullish reversal:

    1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 51.18 with a Limit to take profit @ 51.99 and a stop-loss @ 50.68 Risk/Reward Summary: Limit risk = 0.81 points profit /(-0.50) Stop-loss risk = Gain to Loss ratio = 1.62

    2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 50.78 with a Limit to take profit @ 50.49 and a stop-loss @ 51.00 Risk/Reward Summary:  Limit risk = 0.29 points profit /(-0.22) Stop-loss risk = Gain to Loss Ratio =  1.31

    Daily Candle Chart:

    Forex Trading Demo

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