Oil Continues To Float In A Range

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About: ProShares Trust II - ProShares Ultra Bloomberg Crude Oil (UCO), Includes: AOIL, BNO, DBO, DTO, DWT, NRGD, NRGO, NRGU, NRGZ, OIL, OILD, OILK, OILU, OILX, OLEM, OLO-OLD, SCO, SZO, USAI, USL, USO, USOD, USOI, USOU, UWT, WTID, WTIU, YGRN
by: Andrew Hecht
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Andrew Hecht
Commodities, long/short equity, medium-term horizon, long-term horizon
Summary

A brief rally on the back of the Middle East interrupts oils range trading.

Trade is a critical issue.

Another OPEC cut could be on the horizon.

Range trading from the long side has been the optimal approach.

Trading with UCO on dips has been a winning strategy.

In 2018, the price range in the NYMEX crude oil futures market was $34.54. During the final three months of last year, the price traded on both sides of the range. The high came in