Crude Oil - Update

USO rallied today and is approaching its first level of resistance. I'm looking for USO to trade into the low 40's but will not hesitate to take profits if the market stalls at this first level of resistance.

Oil Closes Above Its 50 Day Average

Oil was up again today with USO closing above its 50 day moving average for the first time since this bear market began. If you look carefully at the last few weeks you'll notice a series of higher highs and higher lows beginning to develop. I think the technical picture is showing clear signs that the seasonal rally is beginning to take place. We'll see what happens.