WTI Oil (USOIL) got its 1D RSI oversold below 30.00 as the market made a new Low since December 09. The last two times the 1D RSI was that low was on the medium-term (Lower) Lows of December 09 and September 26. This is a strong buy signal as every time the Low was priced, it did so on a consecutive 1D Double Bottom candle, which just did today.
The Pivot Zone is the first level of Resistance, but since the Dec and Sep rebounds both hit the 1D MA50 on the way up, we will target that again, setting a medium-term target at 74.50.
TradingShot, for those of us less knowledgeable, but who think here might be a decent place to trade long in oil/energy, what are some of the vehicles you would recommend? Options or stocks? USO, XLE, XOM? I haven't traded much in commodities, but am kind of interested in taking a smaller position, because I think oil is somewhat oversold right now heading into the summer months.