Wednesday, 23 September 2015

USO - Oil fails again to break upward

It has been a messy few weeks for WTIC Oil, stuck between $49 and $43. Today saw the Oil ETF of USO open higher to $15.24, but which then saw a powerful downside reversal, settling -3.2% @ $14.44. Near term outlook is bearish, with viable downside to at least the 14.00/13.75 zone.

USO, daily2

WTIC, daily


Suffice to note... today's candle... bearish engulfing, with a break of soft support/trend.

Despite a net inventory draw, Oil just can't manage a sustained breakout.

*I was recently long Oil via USO, but sold into the initial breakout on Sept'16th (USO $15.40s).

As things are, I am leaving Oil well alone.. on both sides of the trade.

Best guess.. if broader capital market upset into Oct', then Oil will be under some natural downward pressure.