Oil bounced today after dropping sharply the last two days. After topping out around $113.00 per barrel last Friday, oil collapsed into the $105.00 range. This drop over the last two days scared many speculators into selling oil. News hit the market that Goldman Sachs Group, Inc. (NYSE:GS) had told their clients to sell. In addition, there seems to be more signs that the sharp incline in oil prices have sent consumers into hiding.
Oil is bouncing today, with the United States Oil Fund LP (NYSE:USO) trading at $42.72, +0.42 (+0.99%). Oil was going to bounce today, there was no doubt about it. I made the bullish call yesterday and I will explain why?