USO Update

Friday USO was at the breakout point, it did not breakout, I said that I hoped that it would return to the lower trendline 1 more time and I thought there was still time in the price pattern for that to happen. That's exactly what has happened this morning.

 Right now it's fairly close, but not at the bottom.

The 60 min 3C chart is the most bullish chart which you have seen. Right now because of the drop and because it's early, there's no short term data yet to look at, so this trade if bought here is because it appears that the long term chart is positive, despite the negative price pattern. Also because the pricing at this level doesn't hold a lot of risk if USO where to fail below the trendline. As I warned on Friday, I'll remind you again today, that often before a move up starts, or a move down for that matter, it will start with a shakeout. In this case, that would be a break below the trendline to shake out longs who have been buying in the area. If we get that shakeout, that may be a chance to get in on the position or to add to it. We'll have to see if it happens and if it shows buying if it happens. Just keep USO on your radar.