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Hold On To Your Seat: Oil's Going Down

Published 04/25/2016, 03:21 PM
Updated 07/09/2023, 06:31 AM
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USO
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I've been following United States Oil (NYSE:USO) and crude oil's price very closely.

And I think that crude is ready to drop -- another 5%-6% this week and, in the process, allow those who took the short set up at recent highs a great return for the risk.

I'm still short on oil via USO and plan on holding it through Tuesday at least.

Below I've marked up a chart showing the various pullback scenarios that USO faces and what could come about in terms of a downside price target.

Here Are The USO Pullback Scenarios

United States Oil

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Interesting comment, however...there are other technical facts that disagree with your mental perception.. Seasonality is into MAY, and you may be surprised when OIL moves higher. The imbalance and trend has demonstrated oil can move to $60 by AUGUST. Why? Banks and Hedge Funds have invested large in oil for summer storage, delivery costs... expect higher oil to cover those expenses to book profits. Its just the way it is, despite our analysis.
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