USO has finally made it to the original upside/bounce target that I was looking for. While I am a little skeptical of adding to my USO short because of geo-political events in Syria, 3C shows a pretty bearish outlook for USO which has me considering adding a small quantity of additional short positioning, I will continue to hold my USO shorts already in the model portfolio.
Here's the daily USO bearish Ascending Wedge that broke and the small red trendline which was the original bounce target, which is more or less, a "kiss the apex/wedge goodbye bounce".
On a 60 min chart, the target has been met, it is offering some support and there's a small gap below, a move below the yellow gap area should confirm the probability of the reactionary bounce being over and the next leg down starting.
My daily Trend Channel/Stop sn't even close to being stopped out today.
Bollinger Band which were also used to estimate a bounce target have met that target at the upper bands, since USO has fallen to the median, a move lower will also be bearish.
The 2 min 3C chart shows distribution on the open and a slight bounce intraday.
The 5 min chart shows the same.
The 10 min chart is clearly negative, especially at today's gap up open.
The more important 15 min chart is even more bearish with a leading negative divergence and a horrible negative divergence on today's gap up open
The long term 60 min chart continues to look bad.
If you can deal with the geo-political uncertainty, you may want to consider a USO short via USO short or long SCO/DTO.
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