Notwithstanding the recent powerful run, Oil is still in a bear market. Today's likely close for USO below May 8th low is a good indicator of a potential breakdown in oil prices. Our market timing system also generated a short signal on USO and we have an open position in SCO now.
Its possible that USO may now rebound in the very short-term, but I think technical damage was done to the oil charts already.
I am expecting at least a retest of the 50-day moving average (currently at $18.79) or possibly even of March lows around $16.
Charts of oil and USO are located here:
Its possible that USO may now rebound in the very short-term, but I think technical damage was done to the oil charts already.
I am expecting at least a retest of the 50-day moving average (currently at $18.79) or possibly even of March lows around $16.
Charts of oil and USO are located here:
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