My near-term work on oil, as represented by the US Oil Fund (USO), argues that this morning's high at 46.48 likely ended the upmove off of the 42.56 low from 1/18. My suspicion is that the upmove represents that first part of a larger recovery rally pattern that will resume after the next pullback runs its course, which I think should press prices into the 44.50-44 area in the upcoming hours. If such a scenario unfolds, then from the 44.50-44 support zone the USO will pivot to the upside for a run at 48-49 – a move in which I would like to participate.





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.