USO Tests Breakout Level
USO has had a nice rally since last month and is now testing its breakout level. The $40 level was resistance back in June and now should act as support if this market is really as strong as it appears. Keep in mind there is a very dominant bearish seasonal that usually kicks in around this time of year so it will be interesting to see if USO holds this level.
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7 comments:
Hi Kevin,
Great post as always. You are the best!
George
Hi Kevin, any ideas on why USO and UNG have underperformed their corresponding futures so badly? Thanks (terrific blog by the way)
you mentioned "$49" as the resistance/support level but your chart shows $39...looks like a typo you'll want to correct (if I am)
actually...you meant the breakout point was $40 not $49...and not $39 as I commented before...I didn't look at the chart closely before and now realize your type was not the first digit but the 2nd digit in the number $49
(my previous comment not posted yet and might not get posted for whatever reason...no biggie if you don't post it...I just wanted to alert you to the typo)
Thanks guys...my bad
Kevin,
Do you have an upside target in mind for USO?
Hi Tom,
At the moment I don't have an upside target for USO and I am very cautious about being long oil right now due to the bearish seasonal. I am long USO with a tight protective stop.
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