"Be fearful when others are greedy, and greedy when others are fearful." -Warren Buffett
I run a scan on stockcharts.com for ETFs making 65-day highs and another for those making 65-day lows. Not surprisingly, today's low screen is full of commodities, energy, gold, oil, etc.
I hesitate to point out that pretty much all of the oil ETFs are oversold (chart below), similar to where they were the last three times we saw a meaningful bounce in oil prices.
United States Brent Oil Fund, daily data source: stockcharts.com
I hesitate to point this out because when prices are down, they are usually down for a reason! But if we believe that history repeats itself then it's worth paying attention to these charts.
You'll notice on the BNO chart (USO and other ETFs look similar) that the RSI oversold condition was soon followed by a MACD buy signal, which would be a confirmation of potential further upside.
Feliz Cinco de Mayo, Dave
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