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This is a USO daily chart. The blue rising trendline is set to be broken with a gap down today. Trendline breaks with gap downs are often very significant. Still many times there may be a backtest of the trendline, but this could likely be the signal that oil is set for a deep decline. I would guess a rapid move down to the December lows which is the first major support.
Check out the ADX and bollinger band set-up on this. I have talked about this before. The daily ADX has been < 20 for about 6 weeks and the bollinger bands are squeezed tight. An opening gap down with a close below the lower band with the bands expanding often leads to an explosive though often short term (1-2 weeks) move down.
Note the daily stochastics is also just turning down from overbought. All in all a nice short/put option set-up.
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