Oil Should Hold - Market Analysis for Jan 22nd, 2007

Based on my near-term technical work, the fact that the US Oil Fund (AMEX: USO) broke out (above 44.60) and spiked to 45.51 -- and then gave it all back -- represents the conclusion of the first upleg of a larger, unfolding recovery rally period -- and NOT the start of a new downleg. If my work proves correct, then the USO should hold at or above 44 and then embark on a secondary recovery upleg that tests key resistance at 46.00/20._