USO (15 min) showed considerable improvement, late yesterday and especially this morning. We saw a bigger version of this same type of pullback recently on the chart below.
USO (60 min) had a deep pullback in white, but saw strong accumulation there back in late June.
If we define the trend, it's interesting. There have been a series of 2 lower highs and 2 lower lows, which defines a downtrend, you can see the red arrows connecting them, but "IF" this swing doesn't move to a new low below late June's and can in fact move above the last swing high from last Thursday, USO will have reversed the downtrend. What is exciting about this is that USO is within striking distance right now of accomplishing that major trend reversal.
As I pointed out yesterday, the longer term 60 min chart is still positive, but needs positive short term action to stay that way, otherwise it will become transitional. Keep an eye on USO, we may be near the start of a new uptrend, we're only about $1.50 away from that possibility.
No comments:
Post a Comment