There's a zone of support around $37.40 or so, watch for a break of that as false upside breakouts as we saw Monday tend to lead to fast and fairly deep corrections.
Thursday, January 6, 2011
USO Follow Up
Friday I started growing suspicious of USO's 3C chart, Monday I saw what I believed to be a false breakout and since then we've seen about a 2 point decline.
This coincidentally is around the same time the dollar was seeing positive divergences as these two have an inverse correlation.
There's a zone of support around $37.40 or so, watch for a break of that as false upside breakouts as we saw Monday tend to lead to fast and fairly deep corrections.
There's a zone of support around $37.40 or so, watch for a break of that as false upside breakouts as we saw Monday tend to lead to fast and fairly deep corrections.
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