Recently we've had to depend on short term charts to try to discover USO/Oil's intentions, the reason being is the longer harts had been in confirmation with the price move and didn't tell us much. Now those short term charts have filtered through to the longer term charts and we have a better picture of USO.
USO 5 day now showing resistance from the gap on May 5th-the latest negative divergence shows resistance at that gap.
The amount of green arrows on this daily chart made it difficult to gain any insight into the longer term outlook for USO, but now as it is at the resistance level, you ca clearly see negative divergences.
This weekly chart shows the resistance level at a strong gap formed May 5th-gaps tend to be some of the best support/resistance.
The 1 min chart showing a negative divergence on this morning's gap up. Right now there's a small positive divergence, most likely an intraday bounce.
The 10 min chart is what we had to rely on for weeks, negative divergences are clear at resistance and today's gap up.
The 30 min chart went from the green arrow (confirmation-which didn't tell us much) to a negative divergence at resistance and this a.m.'s open.
The 60 min chart also demonstrates the confirmation recently making it difficult to see what the longer term underlying action was, now we see the negative divergences.
It looks like we should see downward pressure on USO over at least the next week or so, with the normal bounce here and there.
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