Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[DiscoverGold]

CRUDE OIL DecisionPoint Weekly Wrap
By Carl Swenlin | April 8, 2017

CRUDE OIL (USO): As of 3/8/2017 United States Oil Fund (USO) is on an Intermediate-Term Trend Model Neutral signal. The Long-Term Trend Model, which informs our long-term outlook, is on a SELL signal as of 3/9/2017, so our long-term posture is bearish.

The one-year daily chart shows USO moving sideways, with the potential to advance in the area of 11.80. The PMO bottomed in oversold territory last month, and that is a good base for a rally.



I find it useful to compare weekly charts of USO and $WTIC because USO price incorporates the cost of continuously rolling over futures contracts. Also, we get to keep the proper perspective on the price of crude, which has been edging higher after the initial bounce in early-2016. I can see the potential for about $60/barrel, but the fundamental problem of oversupply would seem to argue against any major rally for crude oil.



http://stockcharts.com/articles/decisionpoint/2017/04/decisionpoint-weekly-wrap-4-7-2017.html

• DiscoverGold

Click on "In reply to", for Authors past commentaries