“As OIL is currently near the top of the range the logical place to start is with a short position. Your stop loss, however, would be for twice the original position size and quite tight to the last top, say at around $12.75 in this example. In the event of a breakout to the upside, therefore, you quickly flip to a long position,” adds OilPrice.com.
iPath Crude Oil Futures ETN
ETF Trends editorial team contributed to this post.