Swing Trade Idea: Long USO

USO is the ETF for crude oil. Below is its 60 minute chart. It has been in a down trend(see the solid white line) since Aug. 6th and is down about 10% from its recent peak. But its speed of decline is slowing. In fact, today's low is higher than yesterday's low. And it is showing signs of stabilization. In technical analysis terms, it's made a higher low. If it breaks the downward trend line to the upside tomorrow, a swing long position can be established. A stop loss can be set at 33 or slightly lower to leave a little buffer. Given the tight stop limit, the risk reward is worth a trade. Note, if USO makes a new low before it breaks out, this trade is no longer valid. The theme is to go long only after a higher low is made. Again, this is just a swing trade recommendation, not a long term investment recommendation.

 Update: USO made a lower low pre-market. This trade is off. Wait for the trend to turn. Patience pays.