It’s been a rough and tumble year for oil after it dropped to negative prices back in April, but managed to come out of the depths of this negative price territory and climb back, giving bullish oil traders some hope. For West Texas Intermediate Crude Oil in particular, it’s been feeling some downward pressure as of late–will this continue through the rest of 2020?

“The West Texas Intermediate Crude Oil market has shown itself to be susceptible to downward pressure of the last couple of days, and as we have broken below the 50 day EMA again, it certainly looks as if a bigger move is coming sooner rather than later,” a FXEMpire article noted.

“Based upon the last couple of weeks, one would have to assume we just made a “lower high”, suggesting that we are probably now going to go probing for a ‘lower low,'” the article added. “At this point, I would not be surprised at all to see this market reached down towards the $37 level over the next couple of days. I continue to fade short-term rallies that show signs of exhaustion, especially if the US dollar starts to strengthen again, which currently looks to be the case.”

^BGOS Chart

^BGOS data by YCharts

Leveraged ETF Trades in Oil

Short-term traders betting on even more price increases can look to ETFs like Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares (NYSEArca: GUSH). GUSH seeks daily investment results, of 200% of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index.

The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards.

On the bearish side of the trade, there’s the Direxion Daily S&P Oil & Gas Exploration & Production Br 3X ETF (NYSEArca: DRIP). DRIP seeks daily investment results that equal 300% of the inverse of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index, which is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS).

For more market trends, visit ETF Trends.