My hourly work on the U.S. Oil Trust (USO) indicates that in the 47.50 area the USO hit a swing target, corrective low, and since has started the process of establishing a near-term pivot bottom. At this juncture, I would not be surprised to see a false start or two, and-or a retest or two of the 47.50 area prior to a sustained potent upmove that initiates a new upleg in the larger recovery rally period off of the January lows. For now, key resistance hovers at 49, which must be hurdled and sustained to confirm that a meaningful low has been established.



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.