USO Update

Thursday night I did not issue a buy call on USO like the one on silver via PSLV. However, I mentioned we should be watching for accumulation and late Friday around 3:30 I posted this

USO is up about the amount I'd expect from the divergence on Friday.

A candle stick that has a small centered body with high volume like Friday's is often a reversal sign, A lot of shares exchanged hands that day.

 Here's the late day 15 min positive divergence on Friday

 Here's the current 10 min positive leading divergence. I suspect we are seeing a small double bottom and the red trendline is the resistance/breakout area.

 The 5 min chart and Friday's late day positive divergence at the lows. Right now we have another leading divergence.

 This is a 15 minute Trend Channel stop, a tight one. If you bought on Friday, it should preserve some gains or at least keep you from a loss in the trade.

This is a bit wider at 30 minutes, it should move up a bit and lock in some more gains. At this point, we'll continue to watch the underlying action and determine whether the stops should be widened. If the trend line I showed you is indeed the breakout level, then today with the leading divergences could be considered part of an accumulation period.