![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuyhodwfKg5eh9GgepIcJKy-tcVbHQoftkQQbf7s5hIvzoiE4Nd3SzFGlgh8gokhwc5v2bl3xDqkqK3MdeRzwGUVMk0XYeEGFzD9AId43virSxviXZhUdS5DzrWWfjYPeyEkf2KglcuF8/s400/Chart+of+USO1.gif)
A.) Oil prices are consolidating in a triangle formation.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhY0bmCjDF29pwPVEQDv3hXtepPWnfg0V0K0KO85cQMMe5_2XMFYEqOqx1-SA1S_JLijFH_Ws7a9QDiXpEgWTc_0-rsfY72PzTrSN09_d1iNGbigF5AXpXJGknteL0ArYIl4j5ID6E5Lfg/s400/Chart+of+USO3.gif)
A.) Momentum is decreasing and
B.) People are leaving the security.
However, when prices are consolidating, it's important to look at oscillators. To that end
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXiZzDTGYtR07VocVuDP9fKhXM6sspHpJKo_8GXsYwOsg19wdwnOapUk_zNO80EYwWIh4e4t85RtiwCtpdVyGjwW1l96nGm_PzX4xNKiHtFZckm1xZA3aPXTB7vdLJcYpx1HrSDZrXVYY/s400/Chart+of+USO4.gif)
Both the fast stochastic (A) and slow stochastic (B) are showing an oversold condition in the market.