Thoughts on $USO and the 135-136 Range
Been watching $USO closely this week. Today's action has it pushing up, currently around 134.5, and it touched 135.54 earlier. The key area for me is this 135-136 range. We've seen resistance there before, and if it can cleanly break and hold above 136, that would be a significant shift in the short-term structure. On the flip side, if it rejects this area convincingly and we start seeing closes back below 134, that suggests the prior resistance is holding firm, invalidating a bullish scenario for me personally. It's a critical juncture, and I'm keen to see how it resolves by end of day.
That 135-136 range has been a brick wall, no doubt. I'm less convinced a clean break above 136 will hold without a broader shift in the underlying crude contracts, which still look weak on any sustained bounce.