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By Mike Paulenoff, www.MPTrader.com
I am not ready to step up to add the U.S. Oil Fund ETF (AMEX: USO) to our model portfolio just yet, but I am getting much friendlier to the idea technically. Looking at the weekly crude oil chart, it's the time of truth for nearby oil prices, as the price structure pressed against its 7-year support line in the $61.60 area, which was violated marginally this morning ($61.30), but NOT by 1-1/2% ($60.60), which would have triggered another bout of weakness to $55.00-50.00 next. However, to get anything going on the upside, nearby oil must hurdle and sustain above key near-term resistance at $65.60-$66.10 to trigger a recovery rally towards $72-$76. Thus far today, the high is $65.77
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!
