Friday, February 17, 2017

I Want To Say Bearish Crude (USO), But Let's See How This Pans Out

Energy has been a general puzzlement lately. On the one hand OPEC is abiding to it's prescribed cuts and on the other the wheels of production are turning again on Shale Oil. Oil ETF USO currently finds itself in a declining channel which is bearish and a sell/short signal went in ages ago on New Years Day, but since then it's been caught in a bit of a range and not a whole lot has happened. To me this seems like a natural play: just wait for it to cross the support or resistance line. The news continues to be so muddled on energy it's best not to make a call at this early stage until the hand has been shown.