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USO bouncing back? My thoughts for next week
Been watching $USO closely today, with that +1.26% move. It hit 126.6, up from its daily low of 124.17. While it’s good to see it claw back some ground, I’m still leaning bearish on it pushing much further beyond 128 in the short term. I'd give it maybe a 35% chance of closing above 128 by end of next week. The overall macro picture still points to some demand weakness, and while we're seeing some day-to-day volatility, I just don't see a strong catalyst for a sustained breakout right now. Could be a good range to play though, if it stays within that 125-128 band.
2 comments · 5 points
A 35% chance of closing above 128 feels almost generous given how much this thing loves to disappoint. I'm with you on the demand weakness; it's like watching a broken record, but for crude. What's your take on how inventory reports might finally kick it one way or another?