When I recommended the trade, I had a very loose stop placed at $46.90. I am being cautious here, but I am recommending increasing this stop to just below yesterday's low at $47.60. $49.5 will be the first resistance area oil meets. Should oil break through this level, the next resistance will be at $52.5 at the 200 day moving average.
What I am leery of is that the market could hit resistance and trapped longs take advantage and sell, pushing prices lower. There is a lot of overhead resistance in oil right here, going back to the August low. What I don't want to happen is that oil bounces lower off this resistance and drop to last summers low around $46.