The USO daily chart shows that the Oil Fund is trading in a range. On the right of the chart you can see the price bouncing from just below the top yellow line down to just above the bottom.
The way to trade this when the price is rising off of the bottom would be to set a buy order at the top line of $11.65 in case the price breaks out of the range to the upside. A sell order of half of your position would be set at $12.00 with a trailing stop of the other half at $11.90. A stop loss order would be placed at $11.60 in case of a fake out. If the price does not break above the range, you would place a sell order after the price begins to head back down with a stop loss at $11.65. A sell order of half of your position would then be set at $11.07 with a trailing stop for the other half set at $11.10.
When the price is falling, you would set a short order at the bottom line of $11.00 in case of a breakout down, and a stop loss at $11.10 . If the price does not break down, you would place a buy order after the price begins to head back up with a stop loss of $11.00. A sell order of half of your position would then be placed at $11.60 and the trailing stop of the other half would be moved to $11.50.
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