Mar 06

Looking for Deeper Corrective Low in Oil

My near-term work in the US Oil Trust (AMEX: USO), and the look of the enclosed daily chart, indicate to me that the March 1 peak at 51.68 ended the entire upleg off of the January 18 low at 42.56. All the action since then represents a minor correction ahead of the next upleg -- that projects to 55-56. The key question is whether or not the next upleg started today, or if after a bit more strength the USO will press into a deeper corrective low prior to pivoting into a new upleg. Right now, I am staying on the sidelines, looking for a deeper corrective low -- - in the 47.80/00 area -- - prior to establishing new long positions.
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!