In the aftermath of greater-than-expected gasoline inventories, the USO has weakened into the 55-54.60 area, which is not far from Mondayââ,¬â"¢s low at 54.01.  My underlying RSI momentum gauge is not confirming todayââ,¬â"¢s weakness, and already has carved-out a rounded basing-type pattern as the USO price structure attempts to carve-out a base of its own between 54 and 56.  To get anything going on the upside, the USO has to hurdle and sustain above near-term resistance at 56.15/30, which should trigger upside acceleration to 58-59.

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.