Karpel’s Corner: Oil ($USO) Cracks Under Pressure

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Oil continues to break to the downside, with the latest catalyst being Goldman Sachs cutting its 2015 forecast for Light Crude to $75. USO Oil Fund ($USO) breaking pennant support with a decline below $30.50 today.

On the technical side of $USO you can mark key resistance in the $31.5-32.0 range. A breakout here would reverse the short-term downtrend and argue for a retracement of the July-October decline.

We still have Halliburton ($HAL) on the bullish conviction list. Pullbacks at this stage could be an opportunity to buy.

See you next time at the Corner!