Friday, July 22, 2011

USO Update-

USO is rapidly approaching an important support level after the unconfirmed breakout above the flag. USO didn't spend much time advancing, rather it traded sideways until a 3C negative divergence sent it lower.
 The daily bull flag.

 The intraday chart of the breakout above the bullflag and subsequent pullback toward the flag's support.

3C not confirming the breakout and yesterday's negative divergence.

With the IEA suspending their strategic petroleum reserve release after it failed to lower oil prices, you'd think this would be a somewhat bullish event for the oil markets. We'll find out soon enough. My intermediate term outlook on oil is still bullish.

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