Friday, October 28, 2011

USO Update

My apologies on emails and chart requests, the data problem that is ongoing and across many platforms and websites (obviously and exchange related bad feed somewhere) has caused a delay as I have had to back check charts and make sure it's not effecting any indicators, it just seems to be effecting the % change on charts and the position of daily charts on some symbols. I'm trying my best to catch up on a 2 hour or so delay as I spoke with tech support and conducted tests.

This is a range of short, medium and long term USO charts.

 First USO (green) vs the FXE/Euro. I've been noting these discrepancies between USO and the Euro which should largely trade together as the dollar is effected so is oil price. In the first box the dip in the Euro and continued strength in USO almost seems like a leading indication of USO's trajectory. We see it again today with USO a bit stronger then the Euro.

 USO 1 min shows yesterday as a distribution event , the same has been seen in many charts. There was a test of the morning highs (red trendline) and a negative divergence there that is turning into a leading negative and ended up as a failed test of intraday resistance thus far.

 The 5 min chart shows more history and went negative on the 25th sending USO lower. There is an unmarked positive divergence at the lows of the 26th in to the EOD you may be able to see as 3C rises and USO declines, sending USO higher the 27th. I have marked with a white trendline the relative price level of USO  and as you can see it is now leading negative.

 The 15 min chart shows the start of this advance with some accumulation, at consecutively higher prices 3C makes new lows, this too is also a leading negative divergence.

Perhaps the worst is the 60 min chart, again marked in white, relative price levels with 3 in a very steep leading negative divergence, much worse then the negative divergence of October 6th that sent prices much lower.

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