USO - Watch For Potential Support To Hold

Last Week USO moved above resistance and appears to have broken out above of the recent trading range. As most of us "technicians" know, previous resistance once broken should become potential support. The area I am looking at is the 39.70 to 40.00 zone for possible support.

 What I would like to see is for USO to sell off into this support zone and then exhibit some kind of bullish reversal pattern. If I see that take place, I may consider  entering into a long position. On the other hand, if this support zone does not hold, that would indicate that last week's breakout was false and lower prices may be expected. As always, we will let the market tell us which way it wants to go.