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.

USO Establishing Near-Term Bottom?


USO Establishing Near-Term Bottom?
By Mike Paulenoff, www.MPTrader.com

Apart from the intense volatility in the US Oil Fund ETF (AMEX: USO) lately, let's notice that purely from a pattern perspective since the low of 90.04 on August 15 subsequent bouts of weakness have created a series of "higher lows," today's low of 91.83 included. Right now, from a strict near-term technical perspective, as long as the prior pullback low of 90.96 (8/20) remains intact, my work argues that the USO is establishing a near-term bottom. A violation of 90.96 will compromise the pattern within the bottoming formation, and likely will trigger weakness that presses prices to test 90.00. Conversely, to the extent that the series of higher lows remains intact, the USO needs to hurdle 93.70 to trigger upside follow-through that revisits 97.50-98.50 near-term resistance.

  • 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!