SSO Chart – Found Support Again

I charted SSO this morning when it was trading at $40.30, just above its 10 day moving average, after it found support at its trend line of higher lows once again.  SSO did not make it as low as Friday’s intraday low and was able to stay safely above its 20 day moving average again.  I’d be screamed a buy here, but the upside is very limited with the trend line of higher highs less than $1 in the near term.  At the same time, if SSO does make it to this trend line it could be a nice short term trade for a 2-3% gain.  Where it goes after these two trend lines converge is going to be the key to where trades should be focused for possibly another few months.  I suggest treading lightly until a new direction is confirmed or be very ready to change your trade if you’ve chosen the wrong direction.