Crude oil has been getting absolutely walloped for weeks now, having lost over a third of its value recently. Looking at the chart of USO below, it seems to me we are definitely primed for a bounce. The bounce will ultimately fail, but we’re really, really oversold at this point.
Of course, any ETF that has anything to do with energy has been benefiting (or getting harmed) by this same move. The triple-bullish on oil/gas explorers, symbol GUSH, has cracked its own trendline and has lost nearly 70% of its value in less than two months.
One thing I noticed is that the commodity ETF, symbol DBC, has actually cracked the channel which has been in place for years. Like I said above, I think oil will bounce, but I wouldn’t be surprised to see DBC hit resistance in the form of that now-broken channel.