Hi friends! Welcome to this quick update analysis on the US oil market, via the USO ETF! Let's get right to it!
Looking at the daily chart, you can see that price has bounced on my rising blue trendline support, but we're now returning to it for another test. If at any point, the rising blue trendline fails to hold, price will likely fall to the next downside support level at 8.65. Now, the oil market is heavily oversold, but that doesn't mean that it can't remain in oversold territory, as prices move further to the downside. A bounce off of the rising blue trendline should send us up to 10.70 for a resistance test.
Happy Holidays Everyone!
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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Well, the second I post the chart, USO broke down below the trendline! LOL So, that puts 8.65 on target, assuming today's candle closes below the rising blue trendline.
I like this idea. But let's see if the price goes back above the blue line soon. Since crude oil is at the 61.8% retrace, we may see a turn around soon. With a stop loss right below the 61.8% retrace around 44.90 in crude oil.
cedarfox
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@cedarfox, Well, looks like the stop at 44.90 was smashed through. I will be looking for support at 8.65 as you mentioned.
Lotoboater
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This aligns well with the 61.8% retrace on /CL itself dating back to 2016. Nicely called!
Stock market with more room to fall, I hope for a bounce here but will not be surprised to see oil fall further.
skx
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well done!!!
Omhhh
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lol brilliant! good timing, entered just as this appeared too
MagicPoopCannon
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Well, the second I post the chart, USO broke down below the trendline! LOL So, that puts 8.65 on target, assuming today's candle closes below the rising blue trendline.