Crude($USO) is heading for its second straight weekly loss of over 6%, the two worst weeks of 2019. The USO will also finish out this week below the declining 40 week moving average, the first weekly close below this MAV since March 15th. Needless to say, overhead pressure is extremely intense. We expect more downside in the near term. The index has a long way to go before re entering oversold territory.
At time of publication we do not have a position in USO.