Wednesday, April 1, 2009

Black Gold

Morning folks! I wanted to follow up on one of the ETF's I reviewed in Monday's video.

The USO, United States Oil Fund, has been in a short term uptrend comprised of higher pivot highs and higher pivot lows since February. Over the last 5 days it has put in a bullish retracement pattern. Today's gap down caused the stock to fall to it's 50 day moving average.

From a fibonnaci retracement perspective, the USO has now retraced between 38.2% and 50% of its move from Feb 18th to March 26th. As mentioned last night, this is usually an area where buyers start to step in and accumulate shares.
We've also got some prior price congestion that may start to provide support in this area.

Tyler -

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