Wednesday, January 14, 2015

USO Update

This morning's 10:30 EIA Petroleum inventories came in higher than expected at +5.39 mm barrels vs consensus of 1.75mm barrel build with the last a draw of 3.062 mm barrels.

This initially sent crude lower at 10:30 on the report's release, but from everything I can see, we should still be expecting a USO/oil bounce.

 USO 1 min with the EIA release and a positive intraday divergence holding USO together from further decline.

The 2 min chart has no damage and the 5 min...

Still looks great.

This is one of those common scenarios in which once Wall St. sets up positions for a move, they rarely call them off, which is what makes the current market's 5 min chart so interesting.

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