Possible Double Bottom Forming in USOIL
Despite ongoing concerns about oversupply and threats to demand, crude has some upward catalysts after a long bear run. Global contracts are up in the month of June, according to a report yesterday, and China's oil appetite is increasing. Also, Iran attacked a couple oil tankers and the US government appears determined to go to war in order to bolster the president's re-election prospects. These factors *could* catalyze an upward breakout, depending how the geopolitical situation shakes out.
I suspect the $54.40-54.80 resistance level will act as a magnet in coming weeks, though whether we actually push through that level depends on the news. Look for upward triangle breakout and breach of $52.96 resistance as signs that we'll head north to test the $54.40-54.80 resistance zone.
I suspect the $54.40-54.80 resistance level will act as a magnet in coming weeks, though whether we actually push through that level depends on the news. Look for upward triangle breakout and breach of $52.96 resistance as signs that we'll head north to test the $54.40-54.80 resistance zone.
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Downward triangle breakout indicates continued weakness ahead for USOIL.
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Oil up today above first resistance, possible test of second resistance tomorrow.
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USOIL completed its double bottom this morning.
