The USO 1 min negative divergence looks like a pullback to fill in some of the gap created today, this is why I was pretty quick about taking profits this a.m.
The 2 min chart is lagging as well rather than confirming also suggesting at least a pullback here.
Yesterday's 5 min leading positive divergence got USO to gap nicely, there's a bit of a negative divergence close to the open and the rest of the chart is pretty much in line, the yellow area is a potential pullback zone, I'd certainly consider another USO long on a pullback with accumulation building in the short term charts.
The 15 min chart looks like USO could certainly move toward the top of the channel I mentioned in yesterday's update, however there's a relative divergence today within the leading divergence (white box) that looks to me more like a pullback than anything else.
The choppiness in the EUR/USD is not helping USO's cause right now, you may want to keep an eye on the pair for a move higher in the EUR, which will be supportive of USO.
On a final note, while I have expected a pullback since this a.m., stocks can consolidate through price-pullback or through time, consolidation laterally, I suspect more of a price pullback here and if I see short term positive divergences in to that pullback, then I'll be looking to add a new call position.
No comments:
Post a Comment