Oil hit a low of about $43 in the Futures market (/CL) a week ago, and since then it's been going up, around $52 now. So what's the outlook going forward ?
The simple answer is of course, we don't know, but if you felt Oil has hit a bottom, and over the 12 months, you felt it was going to go higher, then here's a trade idea that can potentially maintain a bullish bias while at the same time takes advantage of a flattish price action or even a down move.
The strategy is a Diagonal, on one of the most liquid instruments, USO which is the Oil ETF.
The video analyzes sentiment by looking at Open Interest.
Watch video below.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.