SKF is near the 200sma.. USO is near key trendline support starting from last august. Also USO is close to 200ma. DBC is right at the 200ma. Also euro and aud dollar are way oversold and due for a bounce too.. i think we get a nice 10 point rally in oil over the next 2-3 weeks. Any thoughts?
A lot of energy names have MACD divergences right now and your probably right about a bounce. If these stocks fall to new lows with these divergences an all out massacre might ensue. I am playing the bounce however. Check out Suncor's macd histogram and macd lines divergence. http://stockcharts.com/h-sc/ui?s=su&p=D&b=5&g=0&id=p63890927890
Do you find it profitable to trade macd divergences? It feels like stepping in front of a freight train for just a little upside bounce potential (I'm just asking, not judging).
I would tend to agree. And when the MACD finally "kicks" in, the stocks have already moved 15% higher - - - like most of the energy names and oil service issues have in the past 3 days.
It works great. It worked on the oil names didn't it? The key is the divergence not the crossover. The crossover is often too late.