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By Mike Paulenoff, www.MPTrader.com
For the upmove off of Wednesday's upside pivot reversal (34.07) into Thursday's high (39.82) to be considered bullish, I needed to see the US Oil Fund ETF (NYSE: USO) weakness hold at or above 38.00, which was the case yesterday afternoon. However, this morning's gap down open and plunge beneath 35.78 has quashed the potentially bullish pattern structure into something considerably less constructive -- and possibly has initiated a new downleg within the still dominant bear trend. At this juncture, I would NOT be surprised to see the USO attempt to fill the gap between 37.25 and 38.00, but thereafter to resume its decline towards a test of the December low.
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!
