USO's next leg up: Is $130 by month-end realistic?
Been watching $USO closely this week, specifically after that solid move today to $126.6. We saw it poke near $127 earlier, and it feels like there's some underlying strength building. Looking at the broader market, the energy sector still has tailwinds. Inventory draws, ongoing geopolitical noise—it all points to sustained demand. The daily range today, $124.17-$126.92, shows good consolidation at these higher levels. I'm putting a rough 65-70% probability on $USO touching or exceeding $130 before month-end. The reasoning isn't purely technical, though the chart is constructive. It's more about the macro narrative around crude supply/demand dynamics continuing to push prices, and $USO will be a primary beneficiary. A clean break above $127 would likely accelerate that move. Obviously, any sudden shift in sentiment or significant SPR release could change things, but absent that, the path of least resistance seems to be upward for the near term.
Ah, the perennial optimism of "next leg up." Given the track record of oil ETFs, I'm more inclined to believe in unicorn sightings than a smooth, predictable path to $130 by month-end. But hey, it's always fun to dream, right?