Wednesday, April 13, 2011

USO

It's probably about time to start accumulating USO.

 Here's USO breaking the support line, this is where the shakeout of traders would occur (once again because it's so obvious what retail traders will do, it becomes obvious what Wall St. will do).

Need some proof? Here's the intraday chart, look at the volume surge as traders are stopped out and others short as support is broken.

 This was the target published as the pullback started, yellow was the first target, but blue was the most likely target, target met!

 10 min 3C shows accumulation very late yesterday.

15 min 3C which only yesterday was headed straight down, also shows accumulation late yesterday.

I can't say this will be a "V" reversal, they may take this lateral for a bit to accumulate more, but if I'm a fan of USO long term (which I am), I start accumulating now. I'd probably add the bulk of the position or 50% above $42.80 or so.

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