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Oil Does Not Have As Much Downside As Experts Think



November 25, 2013 – Comments (0) | RELATED TICKERS: USO

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.

Gareth Soloway

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