See Full Report *We've been bearish on oil. *It's clearly in a downtrend. *Fundamentals continue to add to the call.
Oil (NYSEARCA:USO)(NYSEARCA:OIL)(NYSEARCA:UWTI) sped up on the downside this week. The world has been reporting slowing demand trends while production reports have been picking up. While fundamentals point to lower prices we're going to continue to let price dictate our direction. For now it's down.
Here's the oil chart.
Oil broke an uptrend and has clearly formed a downtrend.
The horizontal lines below are multi-decade levels that represent key support and resistance.
If we can get below $40 it will represent an important level that could cause more selling. We need to see how we do around that level.
Here's the longer term chart we showed last week showing the important longer term levels.
Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS