So could be a shortable opportunity on USO in that area for US for oil.
The price of USO dropped slightly today, reaching $89. We saw a slight increase, then the price gradually returned to its normal level over the past two days. I think there is a good opportunity.
I have a very large neutral position, and I have been invested in it for several months. Things are going well.
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.
Um oil it's a bit of a problem. USO is up three when oil is up. Spies do not like it. That's been the narrative. Let's take a look at USO first. USO look if it gets above this uh you know 142ish and holds it. you know there's really nothing up to the highs and the computers are not going to like that.
So indicy sellers will come back if USO gets above here which um it basically is it's opening above there. So that's why the spies are up a dollar now it's down.
