Thu January 25th 2007 Oil in Recovery Rally Pattern by Mike Paulenoff, www.MPTrader.comMy near-term work on oil, as represented by the US Oil Fund (AMEX: USO), argues that this morning's high at 46.48 likely ended the upmove off of the 42.56 low from 1/18. My suspicion is that the upmove represents that first part of a larger recovery rally pattern that will resume after the next pullback runs its course, which I think should press prices into the 44.50-44 area in the upcoming hours. If such a scenario unfolds, then from the 44.50-44 support zone the USO will pivot to the upside for a run at 48-49 -- a move in which I would like to participate.
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