USO Update-

My first post of the day on USO I feared this move up was a head fake

"1 in 3C chart is not confirming yet, it should have by now, so this move will have to be watched as a possible head fake."


My Follow up post  I said, 


"The 1 and 5 min 3C charts below are not a good sign for USO's breakout"


And now we have this...

A move down coming very close to a false breakout should it cross below the $38.40 area.

 Since the last update, the 10 min chart has gone negative. Remember, when divergences get more serious, they migrate to the longer term 3C charts.

 Not only did the 5 min chart above and the 1 min hart below, not confirm the breakout, but they went on to post an even worse negative divergence at the second red arrow.

USO's only chance right now is to hold support at the breakout level, otherwise we may see a quick move down as the longs who bought the breakout start selling at a loss. And this on a day when the dollar s down! 


There are some preliminary signs that the Euro may slip soon, that would send the dollar higher and negatively impact USO as well as equities, commodities and precious metals in general.