Hi friends! Welcome to this quick update analysis on the US oil market, via the USO ETF! Let's get it! Looking at the daily USO chart, you can see that price has plummeted, after I warned about the bearish engulfing candle yesterday. If you recall from my post two days ago, 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." That turned out to be a perfect play, as USO rallied all the way up to $12.97, and then plummeted to $11.62, within two sessions. Interestingly, you can see that today's candle has stopped right next to the price target of the head and shoulders pattern on my chart (vertical dashed blue trendline.) So, the head and shoulders breakdown has been fulfilled, and it's time to take some profits off of the table. With that said, the sell volume today was enormous, and sell-side momentum is like a freight train from hell. The 61.8% retrace lies just below, at $11.65. If that level is violated, price could fall all the way down to $10.70.
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-
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-