Hi friends! Welcome to this update analysis on the US oil market, via the USO ETF! Looking at the chart, you can see that the USO did exactly what we were looking for after yesterday's analysis. If you recall, I said "I'm particularly interested in a rally up to the 'Overhead Resistance' level at $13. If price rallies up to that, and then reverses away from it, I will short USO with a stop order just above $13.30." Today, USO rallied as expected, up to $12.97. That was close enough to $13, as it immediately turned lower, printing a nasty bearish engulfing candle, and closing near the lows of the day. Interestingly, you can also see that the low of the day was right on the 50% retrace, which I warned about yesterday, saying that there was "some decent support around the 50% retrace." From here, we want to see a follow-through breakdown during the next few sessions. It would be particularly bearish for the USO to close below the 50% retrace. From there, the USO could fall to $12.08, and then the $11.65 handle.
The MACD is oversold, but that doesn't mean that it wont remain in oversold territory. The volume on today's decline was healthy and red, highlighting the relentless strength of the bears.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
The MACD is oversold, but that doesn't mean that it wont remain in oversold territory. The volume on today's decline was healthy and red, highlighting the relentless strength of the bears.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.