Right now the US Oil Trust (USO) is down about $0.80 and pressing against its June-August support line at 56.80, which if broken should trigger downside acceleration towards the next key support plateau at 54.75-54.20. Such a move will represent a 40-45% downside traverse across the bullish price channel -- and a "natural" support area where we might expect weakness in the USO to find new buying interest.



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.