Oil, as represented by the USO fund below, had been inside a symmetric triangle for many months. It had broken beneath it, but it’s managed to claw its way back up inside. The dividing line is at $10.70, which is just about the midline of the triangle. Breach that, and oil will gather even more strength. Fail to do so, and it’s at risk of slumping beneath this large pattern again. I remain bearish oil and short energy stocks. I also own January puts against XOP.
The triple-bearish-on-energy fund DRIP has lost a lot of ground in the past month or so, but looking at the Bollinger Bands in SlopeCharts (as well as the supporting trendline), it seems like an opportune place for it to find strength.
The price of Gasoline RBOB Futures is coming to a head in this large triangle formation, as shown on the following Monthly chart.
Watch for a breakout and hold above its apex around the 1.6445 level, together with a new swing high on the Momentum indicator, to confirm sustainable bullish sentiment.