USO — All updates

Next, we have American oil. As I mentioned, both the 10-year bond interest rate and US oil fell today, but we are seeing US oil rise again, returning to a phase of consolidation.

Now we have 29 minutes left until closing. If we close during this period , the candles, we are still in the accumulation phase, guys. We saw a significant drop for two days, but it quickly returned to an upward accumulation phase, very similar to what happened here.

Next up into US oil. You can see US oil, as I described, continued pushing higher today. Only two days of consolidation. Now, we saw this occur back further on the chart in September 2nd when price action initially broke above this neckline of an inverse head and shoulders pattern that has a targeted measured move up here at $116.

Uh but right now, oil says it doesn't really want to pause or pull back even though, look at this. We're overbought. We're past the 70 threshold on the daily time frame for US oil.

So, we're due for some sort of technical pullback that very well could come right up here at the next resistance 108.26 near-term support down here at $9319. I've moved that up ever so slightly because of today's continued advance on US oil.

And apparently we are now hearing, Brian, uh, explosions here on Cargo Island. That is something we are paying attention to for USO, and I know that you used to be a prop trader in our world, but you can see here that that has absolutely caused an upward spike in USO at the moment.

Same thing holds true with the oil and I've seen this long enough to realize that the stocks tend to lead the oil not the other way around. So, the fact that those are very strong, I think is a good sign and uh I would think that we're probably going to see this sort of drift higher over time.

First off, let's look at US oil. You can see here US oil most recently, as you see here on this price action at the middle part of August, notice how when we went up to attack this declining trend line, we hit it 2 days in a row, then just faded with this trend line before breaking out and confirming with this extended move.

Now we have price on US oil coming back down for my trademark breakout retrace bounce play. So at $80.53, you can anticipate price action catching support on the chart of US oil and then potentially bouncing to push up to the next key resistance here at $96.44.