Don't Ignore This Chart!

USO Prepares to Test 2011 Lows

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United States Oil Fund (USO) is one of the "big four" that I analyze on a daily basis in the DecisionPoint Daily Update which you can find in the "DP Reports" blog. The other three of the "big four" are UUP (Dollar), Gold and TLT (20-yr Bonds). 

USO has been in a very long basing pattern since 2009 following the parabolic price move and subsequent crash. Right now price is preparing to test long-term support along the 2011/2012 lows. Next stop would be the all-time low in 2009. The weekly Price Momentum Oscillator (PMO) has a clear range of +5 to -5. Unfortunately for USO, the weekly PMO hasn't even reached the lower end of that range which makes it vulnerable to further decline. Reaching the 2011/2012 lows looks likely, but now it seems plausible that the 2009 all-time low could be taken out as well.

Happy Charting!
Erin

Erin Swenlin
About the author: is a co-founder of the DecisionPoint.com website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at StockCharts.com. Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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