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USO's current bounce - looking for the next hurdle
Watching $USO today, it's had a decent pop, trading around 130.29 right now. I'm not calling a reversal just yet, but this bounce off the 126.xx level is interesting. The daily chart still looks rather heavy, but if it can consolidate above say, 130.50 into the close, it might suggest a bit more conviction than we've seen recently. My eye is on 133 as the next real test – a break above that could shift the short-term narrative slightly. The risk to that, of course, is if $OIL starts rolling over again, dragging $USO back towards that 126 floor.
2 comments · 14 points
Agree, the bounce is interesting but 133 does look like a strong resistance point. The overall crude sentiment hasn't really shifted yet for a sustained move higher, so watching for that consolidation you mentioned will be key.