AMEX:USO   UNITED STATES OIL FUND LP
FUNDAMENTALS:
Ever since the reverse stock split back in April of this year, this chart has become problematic in future price discovery . I have no skin in this, but I want to take on the oil markets as a challenge to myself to focus in on the global markets, and how political shenanigans play a factor in the price of oil . Just keep in mind what drove the prices of oil down this year, and think about the coming presidential election. That will be your unknown variable to the fundamentals in the price.

TECHNICAL ANALYSIS:
I have chosen the daily time frame for this chart since it has done the reverse stock split that has complicated the price ranges. I have found that the price is possibly forming an ASCENDING TRIANGLE or a PENNANT . This pattern I have outlined in white lines. There WILL be a breakout of this pattern in the coming days or weeks. A break below will happen based on the fundamentals of the global economic, and the fear virus.
A break above this pattern will allow the price push higher and retest the orange lines.

Remember, I am not your financial advisor, and I am not legally qualified to give advice or tell you what to do with your money. Do your own research.

Comments

Good thinking. However, to gain exposure to the oil market, I suggest you either use energy-based companies (XOM, D, ...) or trade the commodity/future themselves. USO is a very dangerous instrument if you are not following the fund's activities closely, and definitely one of the worst to B&H.
+2 Reply
I agree that oil is headed lower. I did not want to short the actual CL contract, and I don't have an options on futures account. So, I bought puts on the USO. I am sure I was too hasty as though I think the trade will work (it is) do any of you know the correlation of the USO and the underlying contracts? the CL is at 38 1/2 and the USO is at 27 1/2. It def appears to be rolling over I am just concerned of being correct - but still being wrong!
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