Trade Idea: USO /Oil

I was looking at the futures yesterday as I do everyday and a couple of oil charts stood out, they were toward the longer timeframes, but looked like there had been some additional improvement as I have recently believed that USO was seeing a double Bottom for a bounce, I still am not convinced this is the long term bottom I have been looking for, actually I'm not even close to convinced, but it would seem to me with the $USD coming down (even with some upside support for the market today in USD/JPY, it still should see a strong drop, I suspect that gives oil a nice boost considering they trade opposite each other.

The double bottom (small) with a head fake that I suspect in USO (daily chart).

The EIA oil inventory report confirmed API's data yesterday and came in at a build of +2.5 mm bbl vs previous of -4.3mn bbl, however there's very strong demand for gasoline as refineries are running at 95.5% of capacity which is more than a 6% increase for the same time last year and also shown in the -1.7 mn bbl decline in gasoline inventories vs last week at 0.1mn bbl build. It looks like stronger gasoline demand, unusually strong may make up for the build in oil inventories.

This was this morning's 3C chart reaction to the EIA and just after.

 USO 1 min 3C chart after the EIA report this morning at 10:30.

And the 5 min chart.

I kind of like the idea of something along the lines of a slightly leveraged long like a leveraged ETF, just watch the volume, a stop can be placed just below recent lows (I'd prefer a little room, but this looks fairly low risk).

In any case, we have an 8/21 $17 call idea out here at a partial/half size, I think I may just bring that up to full, but on a new position, something with a bit of leverage, but not too crazy would allow for some decent risk management here.