Oil Prices Trading In Important Price Range

Now that the stock market calendar range for July is set, let’s look at crude oil futures.

First, there is the chart of the United States Oil Fund ETF (NYSEARCA: USO) for those who prefer to trade the ETFs rather than commodities futures

This chart unveils a lot about this oil ETF.

The USO Daily chart shows a couple of interesting data points.

1. It has underperformed the benchmark since late June.
2. The momentum (real motion) remains in a bullish divergence to price.
3. While it failed the January 6-month calendar range after the ME conflict, it is now trading right in the middle of the new July 6-month calendar range. (The new red and green horizontal lines).
4. The July calendar range lines up with the 200 daily moving average. Perfect risk.
5. A move over the July calendar range high would be very bullish.

Before we buy or sell any commodity ETF we always look at the underlying future.

This is the September contract of WTI crude oil futures.

1. The July high is $68
2. It is above the 50-DMA while the 200-DMA comes in around 66.20
3. $64 huge support-the risk
4. With the recent 15% correction from the peak ME crisis, the longer it holds $64 the better it looks
5. The safest trade is the one that clears $68

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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entitiy.