Feb 22

Oil Set to Retest Recovery High

The US Oil Trust (AMEX: USO) has popped above key 10-week resistance at 49.90-50.20, which so far has triggered upside follow-through towards a retest of the prior recovery rally high at 50.74 (2/09). My pattern and momentum work argue for a hurdle of 50.74 on the way to 51.60, and then 52.80. At this juncture, only a decline that breaks 47.30 will compromise the developing near-term bullish pattern.
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!