USO Daily chart, as you know because of the 3C charts I've been bearish on oil for sometime. Despite all of the geo-political uncertainty (Iran especially), USO hasn't been able to substantially add to gains since November. From the November high to the highest close since then, USO has added just above 1%, from November through today, it's down nearly 1%, a whole lot of volatility and not much in the way of bullish gains. A sideways chart like this has only one use for institutional traders, to create liquidity so they can put on a position and I believe t's been a short position. The recent break of several days back on volume and the subsequent low volume pullback of the last few days is not a bullish event. can't recall the candlestick pattern off hand, but it is a negative continuation pattern similar to a bear flag.
Long term on the daily chart you can see accumulation back in August-September that sent USO higher, but in the flat trading range which I suspect distribution, that s what 3C is showing and on a daily chart, which is a strong signal.
Break it down a little more with an hourly chart and we see the same accumulation zone that lifted prices as well as a leading negative divergence through the flat trading range.
The USO 5 min chart may look a little confusing, but the bottom line is distribution any time USO nears the highs and just enough accumulation to keep t range bound and continue to distribute at the highs, this fits well with the theme I laid out below the first chart.
A more recent 2 min chart shows the same, distribution at every high, except there's very little accumulation here, only 1 spot that is obvious around the 13th and that is now under distribution.
I have held my oil/energy shorts in the MP and don't plan on hanging that any time soon.
This recent (last few days) low volume pull back (bear flag) is probably worth looking in to as a place to start a new position or add t an existing position you may be building.
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