Carl Swenlin | Jan 05, 2014 12:58AM ET
The chart for USO (U.S. Oil Fund) has been confusing for some time.
Most recently USO rallied sharply from its November low, only to drop sharply from its December high, taking back nearly all of the gains. Typical action over the last year is that sharp price changes in one direction are followed by sharp reversals. Moving average analysis shows the 20-EMA below the 50-EMA (nominally intermediate-term bearish), and the 50-EMA is below the 200-EMA (nominally long-term bearish). Bearish EMA relationships aside, we can see that the last year has produced many EMA crossovers and reversals, so, while we consider the trend to be down in all time frames, the trend in a broader context is indecisive.
by Carl Swenlin
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