Incoming Reversal! Technical Analysis of USO - United States OilFirst, we look at the 1 week chart and establish there's an overall bearish trend. This is indicated by the downwards purple trend lines. Then we zoom in to the daily chart for more details and establish a level of support, indicated by the horizontal purple line. We also determine the short-term bearish signs and determine there's a loss of momentum. This new bearish trend support/resistance are indicated by the green lines.
What we'll be looking for on Monday is to break out above the long-term bearish purple line. Look to place a trade around end-of-day Monday based on current position above or below that line.
For me, the loss of momentum and the recent activity with oil in the news (Russia/Saudi deal) I'm going to lean towards a bearish trade. AMEX:USO
