USO - time to go long oil

[recession2016]

1) sentiment is extremely bearish

2) technicals are solid

3) dead cat bounce is inevitable

http://charts.stocktwits.com/production/original_47171081.png?1450755687

as you can see oil is in a falling wedge, which is usually a bullish pattern once it's broken - not saying it will break this wedge anytime soon but it's at the bottom range of the wedge and can potentially head to low 40s from here, which will put USO at around $13 (~30% return from here)

 

[Chubbly]

The price will go up once the Saudis feel they have bankrupted enough competition and killed the electric car idea. So prepare to wait. My chart tells me this

 

[recession2016]

The price will go up once the Saudis feel they have bankrupted enough competition and killed the electric car idea. So prepare to wait. My chart tells me this

maybe

oil always spikes before a recession, and we're not that far off from one

 

[Chubbly]

maybe

oil always spikes before a recession, and we're not that far off from one

I would ignore technical analysis and go with fundementals on this. It may go up a bit but it will stay below 55 for next 1-2 years is my opinion. Until OPEC changes their policy it will keep going down.
Shale producers start new wells as soon as it gets above that mark.

Electric cars and shale technology are not going to dissappear. The toothpaste is out of the tube.

 

[achilles28]

Buy Low, Sell High. Oil is a good buy...

 

[magestic]

On an extremely bearish trend, I don't recommend buy. Well it might be OK for short term but I can't say anything about long term.

 

[wwatson1]

Bottoming of this will be a long process, I don't want to be a part of it

 

[Maverick74]

Do not get long oil when it's this steep in contango. The roll yield will kill you even if spot goes higher.

 

[bone]

Goldman-Sachs and Citibank suggests you make your target $20

Iran is going to start pumping oil for legal export in 2016, and on Dec 18 the number of NEW U.S. Oil Rigs drilling for shale oil actually rose by 4.

OPEC and Russia are suffering, and in order to support the totalitarian welfare states they simply cannot afford to slow down the pumping.

 

[londonkid]

Do not get long oil when it's this steep in contango. The roll yield will kill you even if spot goes higher.

Spot on Mav. The smart money will place bets where they dont need to be rolled.