USO has been a tricky one lately, generally my opinion has been that t would break down, accumulate and then break out of the bull flag for real, thus my short term bearish, intermediate term bullish stance.
We may be reaching a decision point in this ongoing drama and any stock that breaks out and then sits on the breakout level for 3 days is a questionable drama.
The hourly chart is bullish for USO, thus my intermediate term stance.
The 10 min chart has been negative almost since the day it broke out of the bull flag and the trendline you see is the top of the bull flag, normally on such a breakout, you'd expect to see follow through buying sending USO higher, instead it has just sat there with the trendline acting as support, but making no progress. I will note there is some slight progress today in the 10 min chart, even though it remains in a leading negative stance.
Today USO has started a triangle, which would generally be interpreted as bullish, it also suggests a directional move breaking this stalemate, volume is perfect for the price formation.
Note also how the Bollinger Bands have tightened up, also suggestive of a directional breakout coming shortly.
The 5 min chart remains bullish.
I think we are getting close to a resolution. If we get a breakout that is solid and 3C improves, then I see no reason USO shouldn't continue higher. The other prospect and the one I have felt is more probable is a breakout of the triangle today that fails and sends USO back into the flag, where it is accumulated and then makes a proper breakout with some volume and 3C support. Either way, I think we are finally nearing a resolution. In addition, either way, I still remain bullish on USO's intermediate term prospects.
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