Why do you think the $19 level was a possible game changer for USO as far as I was concerned? It's because Technical traders are extremely predictable which is why head fake moves even exist in the first place. Before Technical analysis became popular once the internet allowed the creation of cheap online brokers, it worked as advertised. Since things have changed and it's because Technical traders have NOT. I have written about this in some detail and I think it's a must read and understand to trade the modern markets so here are the links once again...
Understanding the Head-Fake Move... How Technical Analysis Went From an Asset to a Trap
&
Understanding the Head-Fake Move... Motivation
This is the best real world example you'll see today...
USO daily is back in the range, but still not free of the range bound trade in the area.
This is how predictable technical traders are, "Where should I put my stop? I see support at $19".
Why do you think EVERY retail establishment NEVER uses whole numbers, for instance, $18.99 rather than $19? It's because our minds are attracted to whole numbers and $19 sounds like a lot more than $18.99 subconsciously.
Here's the attraction, that spike in volume are stops at $19 being hit as price breaks to $18.99, One CENT! Even if you want a stop in the area, choose $18.88, it's too lucrative for market makers/specialists and others to hit those stops and they are all loaded up at the same area, $19.
So far short term charts are in line with the downside. This could be the start of the change in character I was hoping to see below $19.
Oil futures are in line as well.
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