Why Oil Has Likely Topped

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October 8, 2018 6:43am NYSE:USO

From Chris Vermeulen: Our research team, at Technical Traders Ltd., has been very interested in Oil recently as the current rally appears to have rotated lower near a top.


Our predictive modeling systems, predictive cycle analysis and other tools suggest Oil/Energy may be setting up for a downward price trend.  This may be an excellent opportunity for skilled traders to identify profitable trades as this trend matures.

This Daily Crude Oil Chart shows our Predictive Cycle Modeling system and shows the projected price cycles out into the future.  One can see the downside projected price levels very clearly.  This cycle analysis tool does not predict price levels, it just predicts price trends.  We can’t look at this indicator and think that $72 ppb is a price target (near the right side).  We can only assume that a downward price cycle is about to hit and use historical price as a guide to where price may attempt to fall to.

Using our adaptive Fibonacci price modeling tool, we can see from the chart below that downside price targets are currently near $72 ppb, $67 ppb and $65 ppb.  Therefore, we believe the $72 price level will become the first level of support, where our price cycle tool suggests a small rotation may occur, and the $67 price level may become the ultimate downside target level.

We believe the current price rotation in Oil/Energy may be setting up for a decent downside price move with a lower price target at or below $67 ppb.  Historical data shows that this type of price action, downward, at this time is historically accurate and predictable.  If you want to know how you can profit from this move and learn how our research team continues to find and execute superior trades for our members, visit www.TheTechnicalTraders.com to learn more.


The United States Oil Fund LP ETF (USO) fell $0.14 (-0.89%) in premarket trading Monday. Year-to-date, USO has gained 30.64%, versus a 8.29% rise in the benchmark S&P 500 index during the same period.

USO currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 109 ETFs in the Commodity ETFs category.


This article is brought to you courtesy of Technical Traders, Ltd..


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