May 07

Oil Near Possible Meaningful Low

by Mike Paulenoff, Mon May 7th, 2007

My hourly work on the U.S. Oil Trust (AMEX: USO) indicates that in the 47.50 area the USO hit a swing target, corrective low, and since has started the process of establishing a near-term pivot bottom. At this juncture, I would not be surprised to see a false start or two, and-or a retest or two of the 47.50 area prior to a sustained potent upmove that initiates a new upleg in the larger recovery rally period off of the Jan lows. For now, key resistance hovers at 49, which must be hurdled and sustained to confirm that a meaningful low has been established.
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!