USO Update

This is the original , long awaited position, it went from a negative divergence at "A" which was a nice trade to a positive at "B" and a head fake move just before that base moved up at "C".

At "D" we had a signal negative enough that I expected price to pullback, but it seemed to want to consolidated sideways at "D" and then things got worse for the pullback signal at "E" and we finally got the pullback in price, however since then there has been accumulation in to the pullback which is a very important signal and why movement is important to understanding what is going on. At "F" it seems like we have another head fake move that may be allowing a base/reversal to form and USO still has quite a large upside target.

 On a 3 min chart this is the initial pullback area and signal for that at "1" and then the consolidation instead of pullback at "2", finally a worse 3C signal at "3" and the pullback we were looking for (although deeper by this time) at "4". It seems a base has been being put together at "5".

 This intraday chart would show the start of the base at "5" on the chart above, note the recent extreme leading divergence that only appeared once the same head fake move that started the uptrend was psased on the downside.

 Normally I'd say a reversal process that is proportional would take maybe 4 days, but ther are a few things that may make it shorter, in any case I'll be patient on this, I have been for a long time, no reason to stop now.

The candlestick reversal (bearish) at the top is an evening star reversal, almost a shooting star reversal. What I see on the daily chart that makes me wonder about the size of the reversal process is that the last several days it has put in a rounding process and we know there were positive divergences there. Today's bullish Hammer candlestick is another reason, volume should be higher today on the close which makes the candle more effective.

I still think I'll wait, maybe just until tomorrow morning and see if there's a little more on the process, a little more on the divergences.

In any case USO is finally back on the map.