Wednesday, September 23, 2009

Crude Oil - Breaking down?



USO was down 5% today closing on its low. You'll notice in the above chart that USO has just broken down from its triangle formation which I drew in green. More importantly, the major uptrend line (red line) has also been penetrated today.

From a technical standpoint, I would not want to be long this market but at the same time I am also hesitant to short oil here. The reason for not getting short is because commodities are in an uptrend and I feel shorting oil is risky. I prefer to trade oil with the overall trend of commodities. Having said that, I will not short oil here but I will say that USO does indeed look quite heavy at the moment.

4 comments:

Anonymous said...

THANKS FOR THE POST ON USO

Anonymous said...

Fair enough. Thanks for the post.

Joe

Anonymous said...

67.50. We break below and a lot will change about the view on the trend of this commodity. Another thing worth noting is just how poor yesterday's crude inventory #'s were.

Ishkbob said...

Thanks for the post. I noticed the same triangle wedge pattern and shorted oil today buying SZO. You're right that it's risky, but then again deflationary forces are still in our midst

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites