Instead of accelerating to the upside above 51.50, the USO reversed and now is pressing towards a test of near-term support at yesterday’s low at 50.71. While today’s whipsaw action is disappointing, in and of itself, the weakness has not inflicted meaningful damage to the near-term chart pattern. Only a break of 50.70 and the three-month support line at 50.50 will start to compromise what my work indicates is the start of a new upleg destined for 55.



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.