USO looks like it could see a little more downside on Monday, however any events in Libya over the weekend could change that outlook quickly. Today USO hasn't shown a great deal of commitment to a downside move, I believe it is reacting to the PBOC's RRR hike today as speculative money is being drained in China. I don't see anything yet to change my mind that USO should go on to make new highs above the March highs.
There's quit a bit of accumulation in USO since the reversal call on Tuesday and it should support new highs for the month. In the meantime, a pullback here and there is totally normal behavior.
5 years ago
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