Saturday, April 2, 2011

USO Intersting Trend Line

So here is a very interesting trend line which leads us to a very interesting Mon. If you look at the green trend line back in June to Sept it was support then it broke through. Here I go preaching again but support broken now becomes resistance and has it become resistance. Since it has become resistence we have hit it 5 times and went through  it a little, but every one of those hits  it would brake down with a good sell off. So here we are again breaking it on Fri. Well maybe the second part of this puzzle is we are at a potential double top. One last thing I watching is the MACD which is in divergence as we go higher it is actually moving with lower highs.  Monday is such a big day for this stock, do we confirm the break higher or does it come in and break down and sell off like we have the last 5 hits prior to Fri. Again you may think I am a big chicken but I will wait for Monday to tell me which way Oil will be going. With all the up rest in the middle east the best way to play this may be options where you can limit your lost if the trade goes against you. Again I will wait for Monday's close to Give me a better look at this trade.

Disclaimer: Steelman's Technical Charts are my own amateur interpretations of technical charts and for informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. Steelman's Technical Charts assume no responsibility for your trading and investment results.

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