Thursday, September 24, 2009

Crude Oil Trades Below Support




As I pointed out yesterday, the crude oil chart has broken down technically. Yesterday USO took out a major uptrend line as well as breaking down from its consolidation pattern. Today USO violated the low from a few weeks ago which makes the next support level come in at 31.50. Notice the heavy downside volume coming into this market today and yesterday. The bears appear to be gaining momentum here but like I said in yesterday's post, I'll remain on the sidelines.

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