Last week I was starting to turn bullish on oil based on the weekly charts but I never really saw a clear entry point on the intraday charts and the likelihood of a rebound has significantly decreased since then. In fact, on a 15min chart I’m seeing a potential head/shoulders pattern forming on USO that has a target near 22 if it breaks the current neckline. 

In general, I’m on the opinion that oil is going to head back up, but I’m slowly coming to the conclusion that I may be wrong in that assumption.Maybe this global downturn isn’t totally priced in yet and we will retest the lows and beyond. Right now the onus is on the bulls.

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