Oil futures broke below its 50 and 200 day moving averages on the same day. Since 1990, this is the 20th time oil has broken below both moving averages on the same day. Looking ahead at oil's performance following these occurrences, however, shows that a break of both moving averages isn't the signal of impending doom that some technicians suggest it is. In the nineteen prior periods, oil has averaged a gain of 1.36% over the next week and a decline of 0.25% over the next month. Over each time frame, the commodity has seen gains 58% of the time.
Source: Bespoke Investment Group
Related ETFs: United States Oil Fund LP (ETF) (NYSE:USO), iPath S&P GSCI Crude Oil Total Return (NYSE:OIL) , Energy Select Sector SPDR (ETF) (NYSE:XLE)
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