Oil spikes as Iran attacks Israel — ride the energy surge with Chevron and oil f
Thesis
When military conflicts flare up in the Middle East, oil prices usually jump because traders worry about supply disruptions. Chevron is a particularly strong way to play this, since they recently boosted their U.S. production by 24% and have been returning billions to shareholders, meaning they profit heavily when oil rises. By buying Chevron or a broad oil fund, you position yourself to benefit if this geopolitical tension keeps a premium on oil prices.
Strategy approach
Build a rule-based strategy that enters long USO on the daily timeframe when the front-month crude oil futures price (CL1) closes up more than 3% on the day and the 10-day Average True Range (ATR) is in the top 20% of its 100-day range. Exit the trade after a 4% profit target is hit, or if the price closes below the 10-day simple moving average (SMA).