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New Upleg for Oil?
By Mike Paulenoff, www.mptrader.com
On Friday afternoon about this time we discussed the plunge in the US Oil Trust (AMEX: USO) from Thursday's high at 51.24 towards a 49.50/00 target zone, prior to my expectation of an upside pivot and possibly the start of a new upleg. So far, 49.00 appears to be the pullback low, while today's strength has the makings of a significant upside pivot reversal that occurs after the completion of a correction in an underlying bull trend. As of this moment, I have few reasons to think that the USO is doing anything other than starting a new upleg in an incomplete, larger recovery trend off of the January low. If my work proves correct, then the USO should be in the early portion of an upleg that will revisit 54.00 prior to completion.
