Oil Testing Support - Market Analysis for Apr 17th, 2007

Instead of accelerating to the upside above 51.50, the US Oil Trust (AMEX: USO) reversed and now is pressing towards a test of near-term support at yesterday's low at 50.71. While today's whipsaw action is disappointing, in and of itself, the weakness has not inflicted meaningful damage to the near-term chart pattern. Only a break of 50.70 and the three-month support line at 50.50 will start to compromise what my work indicates is the start of a new upleg destined for 55.