SeaLionLLC

USO is breaking out

Long
BATS:USO   United States Oil Fund
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Oil opened higher, swooned with stocks lower on Senator Reid's comments, and finished higher when the day was over. From a technical perspective today's candle is a Dragonfly Doji . The Dragonfly Doji is a bearish reversal candle which is reasonably reliable - if so why is this a breakout. In order for the Dragonfly Doji to be confirmed prices will need to open lower tomorrow and finish lower tomorrow. With the price action above resistance odds are this candlestick pattern will not be confirmed but instead rejected and prices will move higher.

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Comments

USO finishes higher - very bullish
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We are dancing around the $33 dollar level which is somewhat analogous to $90. A close below $90 would invalidate the signal.
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Didn't make a higher price but held above support - push to Monday
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So far this AM oil is higher - we need a close higher to cancel the Dragonfly Doji. Sometimes a failed signal is the best signal of all!
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