Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Powerful Upmove in Oil

Today's bigger than expected drawdown in gasoline inventories despite the build in crude has sparked a powerful upmove in the US Oil Trust (AMEX: USO) in the aftermath of yesterday's weakness and today's lower open. Let's notice that today's action represents a potentially significant key upside reversal session, which would argue that the near-term direction has reversed to the upside (again). Let's also notice that a few times in the past seven sessions the USO has attempted, but failed to hurdle key resistance between 52.25 and 52.60. A confirmed key upside reversal today will argue strongly that the USO will claw its way above 52.25/60 on the way to confronting its 9-month resistance line at 53.55. Yes, I bailed out of my long position yesterday, but I am not yet ready to chase today's upside reversal ... at least until I get some confirmation that a new upleg is in progress.
  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!