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Oil Crashes Into Major Support

Published 11/13/2018, 02:32 PM
Updated 05/14/2017, 06:45 AM

Crude Oil took another big hit on Tuesday as it continued the downhill slide that began in the beginning of October 2018. The United States Oil ETF (NYSE:USO) topped out at $16.25 at the start of October but now trades below $12.00. That represents a more-than 25% collapse in a month.

Bottom Watch

Tuesday looked to be capitulation with panic setting in. Which means oil is likely putting in a bottom for a bounce. The technical chart confirms this, showing major support at $11.85 and $11.70. I expect a big bounce back to $13.00 on the USO.

United States Oil

Latest comments

There is no bottom for stock market, specially for commodity. The bottom is when the price is absolutely less than the cost. Even $20 is not bottom. . . . Those days that the price was $30, the current price was so high, just two years ago.
Commodities are not stocks, and do not trade in a stock market. Price is not based on cost but what buyers are willing to pay at the time.
who in their right mind would identify a support for a commodity using a derivatives price? this is a nonsense post
There goes your 11.7 “support” as well.
Bye-bye your 11.85 “support “
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