The indicator window shows the US Gasoline Fund (UGA) peaking in mid October (blue) and moving lower the last six weeks, while the US Oil Fund (USO) continued moving higher (red). Something needs to give here. Notice that UGA formed a large descending triangle the last 5-6 months and a break below 45 would signal a continuation lower.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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