During oil's parabolic downtrend, volume has consistently shown a distribution pattern while basing before it's next leg down. However, the current volume pattern has changed the character of the oil ETF, USO.
Notice that the current basing range over the past 8 trading sessions, we see increased volume. Not only has there been an influx of volume, the pattern shows positive accumulation, as upside volume clearly outpaces negative volume.
This often occurs before a strong bounce or change in trend. When I see this type of clear change in character, I start accumulating. I already have a position in oil and may look to add some more.
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1 comment:
I like your very interesting post. As an economics student I do understand with such articles that the economic models being taught in the classroom are too simplistic.
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