However, that all changed today with a big breakout and spike in volatility!
Let’s chart it and see what might be next from this boring-to-exciting market:
In our weekly member strategy report, we were anxiously awaiting a breakout – likely to the downside – from this multi-month sideways trading range.
Today we got that big volatility breakout to the downside through the $52.50 support pivot.
How exciting! It pays to have patience and monitor your charts each day, even if you don’t trade them.
If Oil breaks beneath $50.00 soon, we’re likely to see a return toward the $47.00 level from November.
Here’s the tradable situation on the popular ETF, USO:
We see the same type of declining sideways action between $11.00 and $12.00 on the USO.
If you don’t trade futures but want to trade Crude Oil, many traders use USO (volume is already 35 million).
Buyers stepped in to support the market at the rising 200 day SMA near $11.00 per share, but sellers continued to smack them down at the range high near $11.80.
Bears claim victory with today’s high volume, high velocity breakout.
Keep watching or trading this development, which makes us bearish beneath the breakout low.
The United States Oil Fund LP ETF (NYSE:USO) fell $0.19 (-1.78%) in premarket trading Thursday. Year-to-date, USO has declined -8.96%, versus a 5.83% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.