Richard Suttmeier: Crude Oil Will Fall Below $80 a Barrel in June (USO, DBO, DNO)
In case all the turmoil in Europe has distracted you, here’s an important reminder as we wind down the month: Crude oil was at $105 a barrel at the start of May. Today it’s trading below $90, more than $15 — or 14% — lower. Crude oil is literally a tick away from printing what would be its sharpest single-month retreat since 2008, a horrendous period when the U.S. and global economies were imploding, and crude oil went from $140 to $40 over the course of six months.
Is it really that bad out there right now? Will crude really behave so poorly? For Richard Suttmeier, Chief Market Strategist at ValuEngine.com, the answer is yes — and then some.
“I think between now and the end of June we’ll test $79.83,” the renowned technician predicts in the attached video, adding that even at that level, tropical storms and hurricanes would be the only catalyst to send prices back on the rise.
See the full “Breakout” interview below:
Related: (NYSEARCA:USO), (NYSEARCA:DBO), (NYSEARCA:DNO)