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Does Panic Equal Buying Opportunity On United States Oil Fund LP (NYSE:USO)

|Includes: The United States Oil ETF, LP (USO), XOM

Oil is trading near the lows of the day following massive technical selling that was triggered at a break of $35.25.  The dump has taken the USO down to the master support region between $34.25 - $33.75.  This range will have a high probability of a bounce on oil and should be watched for a short term swing.  In addition, the high technical volume should be noted as a decent signal that a short term bottom may be in due to what is referred to as capitulation.  This is when a stock or market has fallen dramatically in recent days/weeks and when it is near the recent lows, it gets flushed out with huge volume on a massive intra day move lower.  This could be what has happened to oil and the USO today.