Russell 2000 (IWM) Looks Ripe

The bullish engulfing pattern that was established Friday in IWM, the oversold nature of the underlying, and lastly, the unclosed gap from 5/20, has led me to place a short-term trade in the Russell 2000 (IWM).

Here is the trade from my Thinkorswim account:

I would like to see a move up to $66.58. This would be the level at which the gap would close from 5/20 and where I would most likely look to exit the trade or tighten my stop.

I also still have 20 contracts out on USO for an average price of $2.53. I am currently down 17.0% on the trade, but have not given up on a bounce. If  the underlying pushes lower and back through the 5/20 low of $31.64 then I will take off the trade. Otherwise, I plan on holding until the anticipated bounce occurs.

Stay tuned for more this afternoon!

Kindest,

Andy