Not much has changed for crude since I wrote this post two weeks ago, save the fact that traders were freaking out about the “wildly bearish oil move” back then, and are now just as scared of the move higher today. My chart analysis (of the USO ETF proxy) remains the same–We had a simple, albeit swift, throwback to the summer inverse head and shoulders bottom breakout from the summer.
As you can see, we had a quick shakeout below, but have indeed responded to that breakout level, extended.
Continue to watch $33 as a firm support level, going forward.
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