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).

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
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!