Short Term Oil - Update 2 (Intraday)
This is an update for my last 2 posts: Jan 7 (Short Term Oil) and Jan 23 (Short Term Oil - Update) looking at the technical picture of oil.
There has been a nice pullback in oil and presents (IMO) a very good entry point. Here is a 30 minute intraday 10 day chart of USO (the best proxy for current futures oil).
Click here for a larger version of the chart below:
The MACD is about to cross and it is forming a rising wedge against resistance.
There has been a pullback based on supply reports. Which are not all bearish when viewed in the proper context. Vet67to82 has the best interpretation of the drivers for the near term future price action. Check out the blog post: Crude and the Contango. Very good read, and look at the previous posts as well.
As always I would love to hear your comments!
The binv standard disclaimer: This in no way constitutes investing advice. All of these opinions are my own and I am simply sharing them. I am not trying to convince anybody to do anything with their money. I am simply offering up ideas for the sake of discussion. As always, everybody is expected to do their own due diligence and to ulimately be comfortable with their own investing decisions.