The chart above is the daily chart for USO. Notice that price has started to break its parabolic arc of uptrend lines on extremely high volume. I suspect a bounce will occur now as price is testing its next support trendline, but clearly, the huge selling volume indicates further downside in the coming days/weeks.
7/18/2008
USO - Wow!
A few days ago I posted that Crude Oil was looking ready for a sharp down move to correct the ending diagonal that had formed. We certainly got that sharp correction! I think we could see a bounce from here, followed by further downside.
The chart above is the daily chart for USO. Notice that price has started to break its parabolic arc of uptrend lines on extremely high volume. I suspect a bounce will occur now as price is testing its next support trendline, but clearly, the huge selling volume indicates further downside in the coming days/weeks.
The chart above is the daily chart for USO. Notice that price has started to break its parabolic arc of uptrend lines on extremely high volume. I suspect a bounce will occur now as price is testing its next support trendline, but clearly, the huge selling volume indicates further downside in the coming days/weeks.
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