USO Follow Up

We entered an additional oil position yesterday (add to)  Trade Idea: Adding to USO July 17th $20 Put which is doing well so far. You probably aware we have several different timeframes we are looking at for two very different trades, one the current July 17th USO put on a pullback and eventually the finishing of the base for a longer term trend trade long USO. The pullback trade dovetails in to the larger base breakout trade.

 The down trend channel back in to USO's base area and the last week's bounce within that channel. I expect we'll be moving to the bottom of that channel and we should start to see a constructive pullback (accumulation of lower prices) to set up the next trade, USO long.

 This 15 min chart could be representative of the failed breakout in USO which was never meant as a breakout, but rather a bull trap/head fake. The leading negative divergence is sending USO lower, thus the trade has good probabilities.

 This would be the last week's bounce inside the daily chart's channel above, which failed sharply yesterday as seen above.

And thus far this morning, we have good intraday confirmation of USO's leading negative (near term) divergence or price/trend confirmation.