My work indicates that Nov crude oil is very ripe for a recovery rally that propels prices for a test of important near-term resistance at $62.25/30, which if hurdled should trigger upside acceleration from the month-long down trendline ââ,¬â€œ towards my next optimal target zone of $65.00/20. Such a move should translate into a $4 advance for the USO from its current level of $55.40.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.