USO Daily
Wednesday, January 7, 2009
Turning Point for Crude Oil?
Below is a chart of Crude Oil, via the USO. As you probably know Crude has been in a bear market since last July. A couple of interesting things have been happening though over the past few months. First, as crude continued it's slide and made lower lows, the MACD failed to do so. It actually has been increasing since the end of October. The recent swing high failed to make a higher high, which would have been very bullish for it. In order for sentiment to change the USO will need to hold it's ground and make a higher low above $28. The other thing that has happened is a dramatic increase in volume. Daily volume has been almost double it's 50 day average the past week. I would be interested in entering a long position if we can hold above the $28 level in the USO.
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