After repeated attempts to cross $39 mark, USO finally closed below the intermediate term trendline. MACD is also confirming waning momentum. Considering the weakness in the broader market and the strength in US dollar, its not surprising at all. Before opening a short position, it would be better to wait for a rally, which reverses at the trendline, confirming start of the down trend.
Full Disclosure: No position in USO.
1 comment:
Very good analysis.
Post a Comment