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Upside Continuation for Oil

Upside Continuation for Oil
By Mike Paulenoff, www.MPTrader.com

Let's have a look at my updated hourly chart analytics of the US Oil Fund ETF (NYSE: USO), and bear in mind, that the API (American Petrol Institute) inventory data now come out on Tuesday's after the close (I think 4:30 PM ET), while the DOE data come out on Wed.'s at 10:35 AM ET, which adds a bit of volatility and decision-making to situation.

The USO has the near-term technical set-up for upside continuation off of this morning's corrective low at 30.20, which my pattern work argues ended the decline from the Jan 6 high at 38.76. If my work proves correct, then the USO has just started a recovery into the 34.50-35.00 area. The only question is how much of it will be ahead of tonight's API data? And/or how much could be triggered in reaction to the data? Very tricky indeed, but my overall technical work is telling me that this round of energy data should elicit a positive response from the market.

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