Wednesday, July 13, 2011

USO Update

 Based on the 30-60 min USO 3C charts, I still have a bullish bias toward USO, but it is bumping up against some resistance and with the dollar possibly gaining a foothold, a correction would not be unlikely.

 USO 10 mn 3C is negatively divergent

 As is the 5 min

 As s the 1 min with a leading negative bias.

 Based on where some of the gaps are and the moving average's historical correlation, I'm guessing a pullback could fall around the red zone.

Also note that the Bollinger Bands have seen an extremely tight period of volatility which is indicative of a directional move coming, from what I see above, I'm guessing it will be a correction down.

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