In this post I am going to make the case for the early building of a position to take advantage of a decline in the price of Oil. One was to do this is through SCO (ProShares UltraShort DJ-AIG Crude Oil). In the following chart, you can see that the RSI is skipping along the 30 level (Oversold) and the Stochastics reading is coming in for a landing. Price is trying to find some footing here above the 40 level:
As you can see there is a Double Top that completed in early October and has since swiftly declined to the present price level as Crude has moved up in price near the all important psychological $100 price point.
If you have the view that price does stall here for Crude, then the play here is to start building a Long position in SCO.