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.
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4 comments:
THANKS FOR THE POST ON USO
Fair enough. Thanks for the post.
Joe
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.
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
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