I closed my crude oil short with Horizons BetaPro Bear Plus (HOD.TO) at \$11.94. Purchase price was \$11.11 from yesterday. I don't think this is the end of the oil bear run yet. However, I couldn't give up a 10% gain (totalling 2.2% in account) in one day. Besides, it is Friday so I would rather take some profits off the table before the weekend. Profit is \$207.50 - \$4.95 x 2 = \$197.60. The maximum potential risk was \$152.50 based on my stop calculation. Thus, the realized reward/risk ratio is 197.60/152.50 = 1.30. It's alright but not that good as I usually aim for 1.50 at least. Here are the main reasons for my exit. Figure 1 shows the chart of crude oil. Note that it is end-of-day data only so today's massive drop is not shown. I marked my exit price of \$71.00 (crude oil) 0n the chart. See that this price is a support level in the long term.
[caption id="" align="aligncenter" width="570" caption="Light Crude"][/caption]
Figure 2 shows the intraday chart of U.S. DB Oil Fund (DBO). Notice the weak volume on the second test of 23.70 support level. This figure was captured at the time of my exit. DBO traded below 23.70 and HOD.TO traded above 12.00 as I am writing this. Let's see if they can stay that way.
[caption id="" align="aligncenter" width="570" caption="U.S. DB Oil Fund"]1[/caption]