Monday Nov 20, 2017
After this weekend update on energy, let's b e very cautious about an entry set up.
USO is trading at the exact same place where it reversed in November 2016.
This weekly chart demonstrates the big rally from June. It has had virtually no correction other than one week in August and this past week.
The blue arrows shown last fall could easily be duplicated again. The blue rectangle indicates the same re-tracement as was experienced ilast fall.
Both RSI and PMO are in over bought territory. And then there is the waffling around we have seen in the overall market already in nose bleed territory.
But there is danger in using USO longer term given that it has to buy futures to replicate price. The actual WTIC chart is rather different.
WTIC Weekly
This is hardly an ideal entry given the RSI and MACD both near the top of their respective ranges.
WTIC Daily
At bottom PMO looks to be rolling over at the very top of its range. IT may be that the move to 58 was the high of a third wave.
Certainly that is the message of RSI and PMO. IF that is the case we are witnessing a possible fifth wave high. The better idea may be to keep our cash dry watching for a top and then pullback.
RSI has peaked once already over the top of its range.
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