USO Technicals Don't Show Another 50% Fall

Published 11/04/2015, 03:41 PM
Updated 05/14/2017, 06:45 AM

Most analysts are still predicting $20-$30 per-barrel oil within months. As oil falls, the charts simply do not show another 50% downside in the next few months. In fact, the fundamentals are showing downside less and less as well. As more and more rigs go offline in the United States, oil production is coming down. In addition, continued stimulus by China and Europe and a 'stable' U.S economy do not show a dramatic decline for crude demand on the horizon. The supply-demand curve is easy to read and it's predicting a stable-to-higher price on crude.

If you look at the weekly United States Oil (N:USO) chart, it clearly has a bull flag forming. Note the chart below. As always, analysts are behind on the calls -- they're too bearish at lows and too bullish at highs. The small investor needs to step up and learn the charts, profits will quickly follow.

United States Oil ETF

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