Upside Target For Oil (USO)

Just a quick update on the oil market. Two days ago I posted about how the 40.00 area in USO should provide support and a could be a buying opportunity. Well this is exactly what has happened as buyers quickly stepped up to the plate and supported this market. USO got down to 40.10 at which point the market quickly reversed higher and thus far hasn't looked back..

If you take the trading range over the past 3 months and double it. you will arrive at my upside target of about 43.90. If USO does trade up to that level, I think that might be an area to sell out some longs. As always, we'll see what tomorrow brings!