USO Holding Ground at Key Support
Been watching $USO closely today, and while the broader energy complex feels a bit wobbly, it's interesting to see it holding relatively firm around the 117.50-117.90 area. Looking at the daily chart, that zone has acted as pretty significant support on a couple of occasions in the last month, after the previous run-up. The intraday low around 117.51 today really tested it.
My thinking is that as long as $USO can maintain above 117.00 on a closing basis, there's a good chance it could consolidate here before making another attempt higher. A break and sustained close below 117.00, however, would invalidate this short-term bullish outlook for me and likely open the door for a retest of the lower 110s. The daily range today, 117.51–120.09, shows some indecision, but the dip buyers seemed to show up at that lower boundary. Just an observation, not advice.
That's a really interesting observation. I'm still trying to get a handle on reading support and resistance levels, so seeing someone point out how USO is reacting to that 117.50-117.90 zone is super helpful. Do you typically use volume or other indicators to confirm if a support level is holding strong?