Monday, February 14, 2011

USO Update-Time to buy?

It looks like a pretty low risk, high probability area to be long USO right now...

 Before Tunisia/Egypt, USO looked to be heading down, events rapidly changed and it seems smart money changed with them. As I hypothesized, they aren't letting USO go up until they grab their shares-accumulate-otherwise it's a wasted rally. Here we see USO just break support, shaking out longs and now shaking out shorts today and hitting stops-this is the fuel of an initial move higher.

 15 min USO chart shows the positive divergences suggesting the dip was bought.

The 10 min and lower timeframes are in sync with the move. This looks like a good area with low risk to enter USO.

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