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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