Oil ETF a Good Long-Term Buy

By
A A A

United States Oil Fund LP (NYSE: USO ) - This exchange-traded fund (ETF) tracks the performance, less expenses, of the spot price of West Texas Intermediate light, sweet crude oil.

In August, USO turned the corner after forming a double-bottom and rallied through its bearish resistance line in late September. Since then, it has established a tight and orderly bull channel, and yesterday flashed a new golden cross (the 50-day moving average crossed through the 200-day moving average) for a strong buy signal.

But several days ago, the price reversed from the top of the channel and will most likely retreat back to the conjunction of the 50- and 200-day moving averages where it is a buy at $36.


The target for a trade is north of $39, which marks the top of the channel, and longer term it is likely that USO will again test its 52-week high at just north of $42.

Trade of the Day - USO Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: ETF , USO

Sam Collins

Sam Collins

More from Sam Collins:

Related Videos

Stocks

Referenced

Most Active by Volume

72,116,831
  • $15.41 ▲ 0.13%
59,164,914
  • $6.35 ▲ 5.66%
39,692,077
  • $124.25 ▼ 0.14%
38,215,090
  • $24.84 ▲ 0.12%
36,287,253
  • $40.72 ▲ 0.16%
33,186,563
  • $13 ▲ 0.62%
31,877,837
    $27.13 unch
31,265,048
  • $5.58 ▼ 1.24%
As of 4/1/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com