All Eyes on Crude Oil “In the Zone”

  • SumoMe

Looking at ticker USO as a proxy for crude oil we see that price is presently within a key support and resistance “zone”.1Figure 1 – Ticker USO with key support and resistance levels (Courtesy:

As you can see in Figure 1, the price range bounded by $15.61 on the lower end and $16.45 on the upper end has served alternately as support or resistance on various occasions.

Classic technical theory would suggest that:

*An upside breakout above $16.45 would suggest higher prices to follow and;

*A downside breakout below $15.61 would suggest lower prices to follow.

If you want to trade oil, keep a close eye on these price levels in the hours and days ahead.

Jay Kaeppel