Wednesday, May 15, 2013

Oil Ready To Fall?

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!***

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