Oil Does Not Have As Much Downside As Experts Think
After the Iranian nuclear deal, analysts were all talking about how oil was headed much lower in the short term. Oil barely opened down today and is hovering at $33.74, -0.30 (-0.88%) on the United States Oil Fund LP (NYSEARCA:USO). While the lack of a major drop in oil was surprising to analysis and Wall Street traders, this was no surprise to me. Everyone knew a deal was coming over a month ago and oil has fallen almost non-stop because of it. Essentially, oil had already factored in the Iranian nuclear deal. In addition, oil is more a factor of global economic growth than one country putting out an extra 1 million barrels a day of oil. As economic growth starts to uptick in the coming months, oil should find footing.
I have a master level on the USO which is my buy price at $32.25. There should be a solid swing trade bounce at this before the longer term down trend continues.