Crude Oil Snaps Down Trend, Suddenly Looks Bullish Here

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May 11, 2017 5:53am NYSE:USO

Image of an oil derrick with blue sky

From Corey Rosenbloom: After a horrid intraday downtrend collapsed price from $54.00 to $45.00 per barrel, Crude Oil finally snapped the downtrend with an impulsive breakout today.


Here’s the progression and target levels:

In the weekly membership, we had a sell-signal opportunity with negative divergences into the $54.00 target.

From there, price fell toward our $50.00 target and then beneath that as the downtrend accelerated toward $45.00.

Positive divergences and a momentum kick-off on May 5th set the stage for a possible early reversal.

We’re seeing confirmation of that reversal this morning with a breakout beyond $47.00 which reflects two (similar) falling trendlines and the 23.60% Fibonacci Level.

From here, look for a push at least toward $48.50 which is the 38.2% Fibonacci Retracement Level along with a prior price low.

We’ll tilt bullishly on Crude Oil (short-term/intraday) while price is above the $47.00 key pivot.

After closing up more than 3% on Wednesday, the United States Oil Fund LP ETF (NYSE:USO) rose an additional $0.14 (+1.42%) in premarket trading Thursday. Year-to-date, USO has declined -15.87%, versus a 7.31% rise in the benchmark S&P 500 index during the same period.

USO currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #36 of 127 ETFs in the Commodity ETFs category.


This article is brought to you courtesy of AfraidToTrade.com.


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