USO and Israel

It was just Friday that I posted this about USO and Israel. 

And now this....

So the obvious trade to be watching here is oil. If you read Friday's post linked above, my opinion hasn't changed much.

 Here's the resistance zone USO has been sitting under, Friday's post explains my theory on this. Note today's breach of resistance failed to hold.

 Here's a look at today's move through resistance and a quick failure.

 Here's 3C at the move through resistance, note the negative divergence.

 The 15 min chart looks solid here, so the opinions I expressed on friday are unchanged. In Friday's post I showed you several moves above resistance that were sold off, I don't think Wall Street wants oil moving into a mark up period quite yet.

This chart you may have to click on to see the red dotted line which is a VWAP on an hourly chart. I would be interested in a long position around the VWAP, it seems to be where accumulation would take place and VWAPS are known to be in use for filling institutional orders on Wall Street. The idea is if the market maker can acquire shares for the institution at or below the VWAP, that market maker is likely to get more business, if they fill higher then the VWAP, it's not likely they'll be getting more institutional orders. As I mentioned in Friday's post and many others, nothing moves oil like conflict with Israel.

I'll update USO as developments unfold. It will be interesting and enlightening to see if accumulation occurs at the VWAP, it would also be an area in which I would be interested in getting my toes wet in USO or some other oil ETF or equity.