Oil! Oil! Oil in …

Maybe we should have said “Oil?”  USO might be worth a light speculative commitment.  We have felt for some time that oil was oversold.  The chart of course doesn’t care what we think.  It just keeps going down.   But there is an effort here to rally and strike a realistic market price.  Conservative speculators will wait until the horizontal lines are pierced and plungers will get a head start here.  With a stop 2 or 3% under the nearby low.

The intersection of the trendline from July and the horizontal line could be interesting.  Penetration into this area could mark the end of this long downtrend.

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  1. alain

    UNG (US Natural Gas Fund) seems to have similar attempts.

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