It is looking like the oil etf USO might be headed down to the $30 level. There are a few reasons for this dip.
- Looking at the 5 year chart, there looks to be some seasonal selling in the summer months. Last year, there was a dip to $29.00.
- A daily downward channel has been established with lower highs and lower lows.
- Inventories are at their highest in years.
The thought is that the ETF will end up hitting the $30 level in the next 6 weeks. The June $34.00 puts look like a possible trade.
***Disclaimer - This is just speculation and opinion. Do your DD before trading!***