Crude Oil(USO) -

Light Sweet Crude oil has been under severe pressure for the past seven days due to worries of over supply, it dipped below $70 intra day only to recover and recapture it and register a close at $70.54 a barrel.

U.S. crude inventories fell sharply amid big builds in gasoline and distillates stocks last week, according to data released by the U.S. Department of Energy.

The fundamentals were already showing signs of weakness but the sell off has been exacerbated due to the resurgence of the US dollar, the dollar index hit an intra-day high of 76.25 in Thursday trading session.

The chart of Oil(USO)(FREE stock trend analysis) clearly shows a break of the wedge formation, indicating further selling pressure to come. The next support level is seen at 34.00 - 32.00.