Oil Prices Holding Up Well
Oil prices are holding up well in the aftermath of OPEC's "threat" to reduce production again in February... unless there is another reason for today's strength that we don't know about yet.
If we did not know better -- i.e., the fact that the temperature in NY is 67 degrees right now -- we would think by looking at the enclosed 4-hour chart that the US Oil Trust (USO) has been carving out an impressive bottom formation since early October. To "activate" the bottom pattern, however, the USO must hurdle the Oct-Dec highs at 54.60-55.21, which should trigger upside acceleration towards a target zone of 57.50-58. At this juncture I am staying long the USO for such an eventuality.