Long SCO at 57.13, sold at 55.64

Along with the downtrend in the equity markets, crude oil is also showing weakness that could last for months. I noticed last week a large wedge forming over the last several weeks. Today it broke out to the downside with a gap. I chose SCO to miminize the capital invested.

On SCO, MACD and Stochastics have given buy signals, and RSI has crossed up above the 50 midline, another positive sign. I have chosen the midpoint of the up gap as my stop. If the wedge measurement I made is correct, target is around 70.

UPDATED 9/21/11: My stop was hit the next day. The timing was wrong, judging by the action of the last couple of days.