USO Update

The USO calls are doing well today, up 20% in 3 days now. In yesterday's 2nd USO update I expected USO to consolidate near some local resistance as short term 3C charts were suggesting that as well as the resistance level nearby.

 This is the resistance level where I thought USO would consolidate before moving higher, as you can see it did just that yesterday and today has broken out above that level.


 The red arrow is the resistance area, late day you can see the consolidation, nice and flat and a positive 3C divergence, indicating the pullback was being accumulated to power up for a move through resistance. Thus far this a.m., USO is showing 3C trend confirmation. I will continue to hold the calls until I see distribution starting to take hold.

Here are the next levels of resistance that I suspect we may see some consolidation.

Thus far the the $USD is helping USO and most risk assets as it has been weaker as shown last night, since yesterday's close.