The USO may have just completed an Elliott Wave Horizontal Triangle. If so, a post triangle thrust down may have just begun. Usually a post triangle thrust is equal to the length of the widest part of the triangle, which in this case is 4.78.
If you subtract 4.78 from the supposed end of the triangle wave "E" at 10.61 it targets 5.83, it could reach this target by late October or early November.
The recent Commitment of Traders Report for WTI Crude Oil futures shows that Commercials - they have the largest positions, are still at a relatively high net short position. Commercials had their highest net short position in late May just before the WTI Crude Oil and USO high of the year.
A sharp decline in USO to a new low for the year could be a sign of a coming global economic slowdown similar to what happened in 2008. If this were to happen it would have a bearish effect on stock markets worldwide.
Mark
If you subtract 4.78 from the supposed end of the triangle wave "E" at 10.61 it targets 5.83, it could reach this target by late October or early November.
The recent Commitment of Traders Report for WTI Crude Oil futures shows that Commercials - they have the largest positions, are still at a relatively high net short position. Commercials had their highest net short position in late May just before the WTI Crude Oil and USO high of the year.
A sharp decline in USO to a new low for the year could be a sign of a coming global economic slowdown similar to what happened in 2008. If this were to happen it would have a bearish effect on stock markets worldwide.
Mark