Beneath is an excerpt from at the moment’s subscriber-only DecisionPoint Alert (Subscribers, forgive the repeat efficiency):
CRUDE OIL (USO)
IT Development Mannequin: SELL as of two/2/2023
LT Development Mannequin: SELL as of 12/6/2022
USO Every day Chart: USO obliterated assist at the moment and closed at New 52-Week Lows. There’s a lengthy tail on at the moment’s candlestick which means fairly a little bit of enchancment occurred to pare down even bigger losses. It’s “hammer-like” so we might see not less than a pause on this decline. The RSI, PMO and Stochastics all suggest extra draw back. We do suppose a rebound is probably going tomorrow based mostly on the enormously excessive readings on the Crude Oil Volatility Index ($OVX).
We determined to incorporate the weekly chart at the moment in order that we will see the place new assist would possibly lie. Curiously, USO’s low landed proper on very robust assist. There may be nonetheless some room for $WTIC to drop decrease. As unhealthy because the every day chart seems we do discover not less than some consolation once we see how this assist stage sits on hole assist from 2020, the 2021 excessive and finish of 12 months lows in 2022. The weekly PMO definitely does not encourage confidence because it dipped into unfavorable territory. If this assist stage is taken out, we might search for assist round 50.00.
Conclusion: We see a probable rebound forward for Crude Oil (USO) probably just under present assist ranges based mostly on $WTIC’s assist stage not being reached but. Nonetheless, if we do not see enchancment on the weekly chart, notably the weekly PMO, we must always count on costs to fall to not less than the $50.00 stage for USO.
Good Luck & Good Buying and selling,
Erin Swenlin
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside together with her father, Carl Swenlin. She launched the DecisionPoint every day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an lively Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Pressure Institute of Know-how in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
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