WHAT DOES THE CHART SAY ABOUT OIL? $USO $OIH $XLE $XOP
On Dec. 1, 2014, The Arora Report published column regarding a signal that oil had lower to go. At that time, Brent crude, the international benchmark for the price of oil, was trading at $69.74, but has since dropped to $61.57. West Texas Intermediate (WTI) the benchmark in the U.S., trades at over a $5.00 discount to Brent.
What does the chart say now about oil? Let us take a look at the United States Oil Fund ETF USO.
Please click here to see the annotated chart of USO.
The following observations can be made from the chart.
- Oil is very oversold, and a significant bounce can happen any time.
December 15, 2014