Tue March 6th 2007 Looking for Deeper Corrective Low in Oil by Mike Paulenoff, www.MPTrader.comMy 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.
For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his ETF Trading Diary.
Login to our "Echo" Comment System by using your user name and password from any of our AdviceTrade services (AdviceTrade.com, TheTechTrader.com, MPTrader.com, MarketsPath.com, and SwingTradeOnline.com):
