Although there is no magic in the 30-week simple moving average, there must be some kind of bottom in place for a price to cross over this moving average from below. The price of USO fell below its 30-week moving average last July and has remained there for the nine months since. But now the indicator has moved down below $22, while the price closed today around $20.50. I expect to see the price of USO cross back over its 30-week average in a few weeks. When this technical event occurs, it might be a better time to buy crude oil than it has been for quite some time.
Thursday, April 30, 2015
Crude Oil Continues to Bottom. Could be time to buy soon.
Although there is no magic in the 30-week simple moving average, there must be some kind of bottom in place for a price to cross over this moving average from below. The price of USO fell below its 30-week moving average last July and has remained there for the nine months since. But now the indicator has moved down below $22, while the price closed today around $20.50. I expect to see the price of USO cross back over its 30-week average in a few weeks. When this technical event occurs, it might be a better time to buy crude oil than it has been for quite some time.
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