USO / Crude Futures Update

I think there can be little doubt that our USD expected (countertrend) bounce, Will have implications for oil as well as the many others I have recently covered.

In that sense, since the $USD is starting to make a break higher, the USO position seems particularly well-timed, although yesterday would have been better.

Here's the latest update for USO and Brent crude futures with a little USD mixed in.

 I post this crude futures one day, base and positive divergence quite often because it is a 3C textbook divergence in an important time frame which I believe will be the primary trend eventually.

We don't get the see these often. Many of you may recall the homebuilder charts I have shown in the past that were under huge accumulation as the tech bubble was bursting in 2000. The point of which, after the tech revolution who would've ever thought that boring housing would lead the next bull market? The point of that being, smart money new at least a year or two in advance and had been accumulating for well over year. That's a pretty lucky guess!!! Especially since many of those charts saw 2000 to 4500% gains!

 The daily USO chart and resistance at the yellow arrows with a stop run / head fake move at the yellow square. This is a tough call forme because I do believe oil is on the verge of a primary bull trend, I just believe that it needs to pullback and gather I head of steam before trying to take out base resistance and breakout to stage two, Mark-up.

 Our X-Over screen to prevent false, whiplash signals using three conditions including a custom indicator in the middle window (yellow). You can see on this three-day chart where the sell or sell short signal was given and you can see USO is very close, if not at, a trend buy signal. This is a trend timeframe so the buy signal does not rule out a correction/pullback.

 USO 60 min after near perfect confirmation from 3C, the divergence should be obvious to the right.

 CL/ Brent Crude futures 30 min

Brent crude futures 15 min

 USO 15 min

Brent 7 min

USO 5 min

 USO 2 min timing chart.

 $USD 30 min rounding bottom and positive divergence for the expected counter trend bounce...

The USD in red/green candlesticks vs. Brent Crude futures (purple) with an obvious inverse relationship. This bounce in the $USD should be just enough to finally knock USO in to correction as outside events such as the Iranian shipping news, recent Inventories coming in better than expected, Russian/Chinese Mediterranean Naval drills, etc. have kept it right at resistance without a pullback.