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

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COMMENT RE CRUDE OIL - CRUDE OIL (USO)
By: Carl Swenlin | December 28, 2018

Realizing that many may not follow crude oil that closely and won't see my comments below, I want to express my concern for the recent crash in crude prices -- down over -40% in less than three months. This is good news for us at the gas pump, but we should keep in mind that the rapid collapse of crude prices has got to be causing major dislocations within the industry, which will have a negative effect in other areas. This is a factor that goes on my list of concerns along with the anticipated weakness in real estate, and the debt bomb.

CRUDE OIL (USO)

IT Trend Model: NEUTRAL as of 10/29/2018

LT Trend Model: SELL as of 11/23/2018

USO Daily Chart: A falling wedge formation combined with a daily PMO positive divergence offers hope for a price bounce.



USO Weekly Chart: The next support for crude ($WTIC) is at 40.00, then 26.00, which is drawn across the 2016 low. For USO comparable levels are 8.50 and 7.75. I would not be surprised if the 2016 low is tested.



$WTIC Monthly Chart: The monthly PMO has topped and has crossed down through the signal line. The next long-term support line cuts through tops and bottoms, so it is hard to be precise. Based upon the weekly chart, I'll pick 26.00 as a favored target.



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