Alert: crude oil due for technical retracement.

Let’s add DTO.

Looking at crude oil’s technical picture, I think we may see it sink as far as $101-$102 per barrel. Increasing talk of a diplomatic solution to Iran-led Middle Eastern tension may allow the technical pull-back to play out as near-term risk premium diminishes.

Let’s play this short-term potential by adding a position in the PowerShares DB Crude Oil DoubleShort ETN (DTO). I recommend staying pretty tight on the stop-loss considering the geopolitical uncertainty that could allow this position to run against us quickly.



Trade Essentials.

DTO (Last Price: $35.13)

Buy shares of PowerShares DB Crude Oil DoubleShort ETN, symbol DTO, at the market. Then place an order to sell all your shares of PowerShares DB Crude Oil DoubleShort ETN, symbol DTO, at $33.47, STOP; this order is good till cancelled.