Wednesday, September 23, 2009
Beginning of a breakdown in oil prices?
Note the clear "triangle wedge" pattern formation. In the previous two blog posts, Wilbros (WG) and GLD both had huge breakouts out of the triangle after running out of space to oscillate between ceiling and floor. With today's 5% drop in USO, it could be the beginning of a break to the downside in oil prices. If this is the case, SZO (short oil ETF) could be a consideration. Or DTO (double short oil ETN) for more aggressive speculators.
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