United States Oil Fund LP
) - 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
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.
If you have questions or comments for Sam Collins, please
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