This 5 min chart represents the breakout of USO from the descending triangle yesterday and the current breakout from a bearish continuation triangle.
This morning formed a sharp negative divergence on the 5 min USO chart. While there is longer term potential on 3C charts for more upside, this pullback looks real. The triangle forming after a downside move is taken to be a bearish continuation pattern, but these are always broken up with head fake moves.
If you are trading this leg in USO, be aware of any move below the triangles apex (point) as that will likely identify this upside move as a head fake. If 3C responds favorably to the breakout and no negative divergences form, then this may be the extent of the pullback. It is pretty early for a pullback with the breakout occurring only yesterday.
If you are one of our more active traders and trading this leg, make sure to keep in touch.
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