 Hey everyone, this is Dan. I bought the triple leverage oil ETF-UCO earlier today because I saw the opportunity on the chart and I also saw some very interesting current events. In this video, I will be talking about UCO as well as another very popular oil ETF, USO. Let's get into the details. First, let's look at how UCO and USO have been trending since the beginning of the year. As you can see, SPY, the ETF representing the movement of the S&P 500 has been down 16% since the beginning of the year, so far certainly has been a bearish year. UCO, on the other hand, has gone up by an impressive 75% and USO has gone up by 42%. If you had bought UCO or USO in the beginning of the year, you would have been very happy by now. If you look at the movements of UCO and USO in the last 3 months, you can see that after they went up phenomenally from January to June, they started to go down in the beginning of June. Both UCO and USO then started to rebound on July 14th, and that has to do with President Biden's visit to the Middle East. I will talk more about the Biden trip in the next few minutes. As we can see, UCO has been following this channel since the middle of July, and as of today, it just popped above the upper boundary line. Similarly, USO has also been following a channel, and actually it has definitely popped above the upper boundary line. If you like what you've seen so far, I'd like to encourage you to click the like, subscribe and notification buttons, that'll enable you to receive notification when I post my next video. It'll also encourage me to make more videos like this in the future. As usual, I will very much welcome your comments, questions and suggestions. Thank you very much. Let's continue. We have a lot of interesting stuff to cover. To understand where the prices of UCO and USO will be going in the next few weeks, we must understand some of the important current events. Since February 24th, there has been a war going on in Ukraine, which caused shortages of oil, natural gas, wheat, and many other commodities, in addition to causing unimaginable human suffering. As of May 30th, the leaders of the European Union decided that they would eliminate two-thirds of their Russian oil imports by the end of 2022, as a way to punish Russia for the Russian invasion of Ukraine. Recently, the G7 nations agreed to look into the possibility of imposing a price cap on Russian oil. As a piece of reference information, I'd like to mention that in 2021, last year, the EU imported 2.2 million barrels per day of oil from Russia. That's a lot of oil. In March, the Biden administration announced that they would be releasing 1 million barrels of oil per day for six months from the Strategic Petroleum Reserve. On July 17th, Biden wrapped up his visit to the Middle East, which included a stop in Saudi Arabia. Unfortunately, Biden was not able to secure any commitment from Saudi Arabia to increase crude oil production. As a result, oil prices jumped up after President Biden finished his trip to the Middle East. In June, OPEC missed the production goal by more than 300,000 barrels per day. Compared to May, the June production was actually down 100,000 barrels per day. We can see that OPEC is not going to be able to backfill the reduction of Russian oil export to the EU anytime soon. That's why I believe oil prices will continue to go up. Meanwhile, because of the slowdown of the world economy, commodity prices have been falling since June. The rebound of crude oil prices since the middle of July is an exception to the generally downward trending prices of commodities. In my opinion, as long as the Ukraine war is still going on, oil prices can still go higher from here. Besides, from the technical analysis perspective, I believe oil prices will go up in the next few days. We'll discuss that when we get to the charts. At this point, I'd like to remind you to subscribe to my Twitter account, which is DanMocketL, in addition to subscribing to my YouTube channel. By way of my Twitter account, I inform my subscribers almost on a daily basis about some of the trades I make and about important current events. For example, on May 27th, I tweeted that I sold two-thirds of my UCO shares that I bought on May 19th at 9.5% gain. Just earlier today, I tweeted that I bought UCO shares because it's getting support from the 20-day symbol moving average. Let's look at the price charts. First, let's look at UCO. In the following charts, I will be showing the 50, 100, 150, and 200 period exponential moving averages by way of these dashed lines in different colors. I will also be showing the Bollinger bands, the RSI indicator, DMI indicator, and MACD indicator. For UCO, I'm showing three panels here. On the left is an hourly chart. The middle one is a daily chart, and on the right side is a weekly chart. For each chart, I'm showing the volume, the RSI indicator, DMI indicator, and MACD indicator. Let's look at the daily chart. We'll zoom in. For the RSI value, it's currently at about 48, which is on the low side. That's why it wouldn't be a bad idea to buy, and that's exactly what I did today. DMI on a daily chart is still bearish, although on an hourly chart, it turned bullish in the middle of the day today. On a weekly chart, it's bearish. If you look at the overall trend of the UCO chart, it's been going down since June 9th, and then after the Biden visit to the Middle East, it jumped up on July 18th, because unfortunately Biden was not able to secure a commitment from Saudi Arabia to increase oil production, and that's why the oil price has been going up after that. And then it pulled back a little bit, and then it started to head up again about three days ago. So today, if you see the candlestick here, it popped above this green line, which is the middle of the Bollinger Band, at about 37. If you look at the hourly chart, that's exactly when it started to get support and started to take off, and that's when I bought in. In my opinion, as long as the Ukraine war is going on, the EU oil shortage is not over yet. And since OPEC cannot backfill the Russian oil, I believe oil prices will go higher than the current level. If you look at the current level at about 38, that's about the price level back on March 1st. That was one week after the start of the Ukraine war. And then it went way up. Then it came down a little bit, and then it went as high as 55, and then it came way down and then started to rebound. That's why from a current event perspective and from a technical perspective, I believe today is a good time to buy. Let's look at the support and resistance levels for support. I see the next level of support at 37 right here, which is in the middle of the Bollinger Band. And then the next level down will be at 35.5. That's a historical support point here. And then the next level down will be at 33.5, the 200-day exponential moving average. And then the next level down would be the recent bottom at 31. For resistance level, I see the next resistance level at 41, which is right here for gap closure. And then the next level up will be about 43, which is the 50-day exponential moving average. And then the next level up will be at this gap closure point at 44.5. And then the next level up will be at 48, this recent top. Let's look at the USO chart. The USO, it looks very similar to U.C.O., went up since the beginning of the year or since the start of the Ukraine war, and then it started to drop as of June 9. Then it went up and down a little bit, but generally trending down. And then after the Biden visit to the Middle East, it took a big jump upward. And then since then it's been hitting the middle of the Bollinger Band. And then today it popped above the middle of the Bollinger Band as well, just like the U.C.O. For support level, I see the next level of support, of course, being the Bollinger Band at 76. And then the next level down will be at 74.5, the recent bottom here. And then the next level of support will be over here around 73. And then the next level of support will be the bottom of the Bollinger Band around 71. And then the recent bottom of 69.5. For resistance, I see the next level of resistance at the recent top around 78.5. And then it'll go for a gap closure at 80. And then the next level up will be another gap closure at 83. And actually, before that, the 50-day exponential moving average will be another level of resistance, which is 81.5. And then the next level of resistance will be at around 86, the recent top here. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and analyses for educational and entertainment purposes only. If you want to buy or sell stocks, you should make your own decisions. And you should definitely consult with your financial advisors before you do so. This wraps up my video. For now, I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.