Thursday, November 12, 2009

Crude Oil - Update



Above is a daily chart of the ETF for crude oil symbol USO. You'll notice that USO has gotten to the top of its rising channel and is now beginning to roll over. The MACD is clearly in sell mode and we are starting to see volume increase on the down days.



If you look at the seasonal chart for crude oil, you'll quickly see that the two most bearish months of the year are November and December.

Given the bearish seasonal as well as bearish technicals, I am expecting to see crude oil trade lower in the weeks to come. This falls in line with a rising dollar. If the dollar rises like I think it will, that will put pressure on commodities which of course includes oil.

1 comment:

getyourselfconnected said...

I wonder how the massive offshore oil holding being done by many players will appreciate an oil pullback.

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