As noted to Trade Report subscribers earlier today, I entered DUG at $21.19. The inverse oil services ETF is near strong price support and is very oversold (oil is overbought). I am using this trade to short the oil sector.
Setup: Oversold bounce. Stockchastics are way oversold. The last 6 times they reached extreme levels, profitable trades were there for the taking.
Risk: My stop is in the $19-20. My initial target is $24-25. This gives me a 2 or 3:1 reward to risk.
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