Crude oil prices have been declining for the better part of two months now. In fact, we’ve had a down move of about 17% from its high tick of 112.24 (in August) to its low tick of 92.43 this past week. Crude Oil has definitely been out of favor, but has it bottomed? A couple of charts are telling me yes.
The first chart that I found interesting was the YTD daily of RBOB Gasoline prices. It had very nice week, getting back above its previous YTD break down area of 2.68. This is a pretty important development as it could be signaling that crude oil prices are ready to follow its lead.
The second chart is a weekly Crude Oil price chart. Its trading near its long term trend line that goes back to May 2010.
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The author is long Jan call spreads in USO and short Jan XLE puts at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
