After USO kissed its 309-week EMA resistance line in the last week of September, the oil fund had no energy left in it to break that ceiling. USO dropped hard the following week.
In the 4 weeks since that drop, bullish market participants tried to run up for another resistance break, however, despite the geopolitical development that did not work. Bearish market participants stepped in even below the 309-week EMA level and pushed the fund’s price down to close the week at $74.85, ~1% away from the price it held 4 weeks ago:
Could price be heading down towards the 130-week SMA (body) and the 139-week SMA (wick) support lines?
Absolutely.
Currently, these support lines are hovering at $66.12 and $64.60, respectively.
Let’s keep watching how USO’s price develops in the next few weeks.