Jan 22

Oil Should Hold

Based on my near-term technical work, the fact that the US Oil Fund (AMEX: USO) broke out (above 44.60) and spiked to 45.51 -- and then gave it all back -- represents the conclusion of the first upleg of a larger, unfolding recovery rally period -- and NOT the start of a new downleg. If my work proves correct, then the USO should hold at or above 44 and then embark on a secondary recovery upleg that tests key resistance at 46.00/20._
Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!