USO/Crude Update

Remember the updates of the last few days I have said there seems to be something fundamental (perhaps a supply issue) that we don't know about yet, that seems to be effecting crude?

Well quite obviously that fundamental information was Gaddafi's death and Libyan light/sweet now apparently back or moving back toward normal production. Remember the Saudis pledge to take up the slack for Libya? Also Italy being the main consumer of Libyan Crude and how the fact that Saudi crude had such a high sulfur content that it would take 3 barrels of Saudi crude to equal 1 barrel of Libyan crude and the fact that the plants might not even be set up to remove that much sulfur from Saudi crude?

We talked a lot about it and apparently this is what has been giving USO that previously "undefinable" fundamental issue that was causing the charts to look a bit strange. Any way, now we know.

So here's USO now...

 1 min looks like there could be some further upside

 2 min looks the same

 5 min also looks like further upside is probable

 10 min is the fulcrum and trading in line.

 15 minutes is where it start to get negative

 Long term trend 60 min-this looks like a fairly good size downtrend and recently we have seen a sub-intermediate trend consolidation.

A close up of the 60 min shows the larger sub-intermediate trend at a turning point which should continue the downtrend, perhaps it will move to an intermediate downtrend.

However in the short term, it looks like a bounce is likely. The short term strength may be an opportunity to start a position or add to a position in something like SCO.