Oil Closing in on $40

Oil Closing in on $40
By Mike Paulenoff, www.MPTrader.com

Oil is closing in on $40.00 and perhaps on the way to $37.50 amidst an increasingly acute oversold condition. The trendline created by connecting the two major rally peaks between September 2000 ($37.89) and February 2003 ($39.99) cuts across the price axis at 46.00-43.50. As the chart shows, a sustained break of 43.50 points to the $37.50 area next. Where will it finally find that acutely oversold, extreme downside price level? I don't know, but my pattern work off of the July high at $147.27 warns that it is approaching fast, a potential opportunity for ETF traders of the US Oil Fund (AMEX: USO).


  Matched
x
  • In our live, interactive Trading Room, we identify trading opportunities in ...
  • Equity Index Futures
  • Index & Sector ETFs
  • Individual Stocks
  • Precious Metals
  • Energy
  • Forex
  • Treasuries
  • International Markets
  • And Much More
Join MPTrader Now!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!