On Friday I saw two opposing headlines regarding oil on one financial website: (1) No worries, oil isn’t going any lower, and (2) Oil may go to $20. Before we clutch our head in both hands and cry, “It’s so confusing!”, let’s look at some charts.
First, the one-year chart of USO shows a bounce off the bottom of the declining trend channel in November. The rally failed rather quickly, and price broke down through two lines of support.