New Chart on Oil

Where might crude oil go next?  Let’s cast the chicken bones and see.

My Red-Hot Commodity ETFs service was stopped out of the United States Oil Fund (USO: 39.51 -0.54 -1.35%), and it’s been little consolation to me that the USO and oil have continued to head lower.  How low could oil go?  Let’s look at this chart …

You can see that crude might be at support … but it could easily test lower support at 68.50, 64.30 or even 60.20.  Prudent investors might wait for a buy signal before getting long again. If you want to try and short this, it’s your money, but just remember that shorts are now piling in to the crude trade and so it could swing violently the other way on news out of the Middle East, Nigeria, or other oil hot spots.

Related Posts

• Crude Oil Chart — Rangebound (02/16/10)
• Gold Chart and Commodity Chart for Monday (06/29/09)
• Crude Oil Chart — $82 or Bust! (12/29/09)
• Gold’s Dip, Plus Oil Chart and More (07/13/09)
• New Video and Dollar Chart (08/11/09)