Now that the USO appears to have completed a 50% retracement of its recovery rally from 54 to 58, both my pattern and momentum oscillator work indicate that a secondary recovery upleg likely has started that should propel the USO above Thursdayââ,¬â"¢s high at 58 to a minimum target of 59 ââ,¬â€œ and possibly to 60 prior to completion.  Only failure to hurdle 58 followed by a decline that breaks todayââ,¬â"¢s low at 55.80 will argue for a full-fledged retracement of the entire upmove from 54 to 58.

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.