Thursday, April 5, 2012

Crude Outlook - USO

Unless there is a catalyst at play (conflict, supply, dollar whatever) crude could have tough time moving through mutli-year resistance. Will history repeat itself?


Historically over the past 3 years crude has hit the same resistance level (or gone higher) and sold off in the April/May months we are now in. 

Average crude prices tend to run strong Feb-Aug. USO is not quite reflecting this over the past few years.
Lots of overheard resistance to chew through with weak volume, RSI and MACD signals. Crude appears to need a catalyst in order to break through.


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