A wild $1 range today in the US Oil Trust (USO). At one point this morning, after the DOE data were released, the USO plunged to a new reaction low at 47.59, breaking the May 29 low by $0.04. But there was no downside follow-through, and instead of additional weakness the USO has reversed with some power and climbed to the 48.55 area -- leaving behind a potential intraweek double-bottom. Further strength above 48.80 will indicate that a near-term low has been established, which should trigger upside acceleration toward 50.00 thereafter.



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.