USO Update

Here's Friday's USO Analysis

The important points from Friday' analysis and recent analysis of USO have been 1) that the majority of the charts are strong and suggest USO will make nw highs above the March highs and 2) that any downside momentum we have seen thus far has been weak, meaning the downside divergences haven't shown a lot of commitment and don't seem to amount to much other then average market action.

 A negative 1 min divergence on the open today, thus far USO is not confirming on the 1 min chart, but on the other side of the coin, once again, the negative divergences aren't looking that committed.

 For example, the 5 min chart is in perfect confirmation, there's been no bleed over from the 1 min negativity.

Tuesday of last week was the day the reversal call was made, which was accurate to the day. Here we see a fairly strong hourly positive divergence in leading position. This is part of the reason, technically, that I believe USO will accomplish a breakout from the early March highs.