Reasons I believe a potential trend reversal will arrive soon:
Price has pulled back into 50 Day Moving Average
Previous day's market hours opened with a gap lower and a push of buyers that failed to move the price much higher
Price is hugging the trend line, seems to need only a little push to break through
We saw a gap down on the open today. Regardless, buyers were still willing to come in and drive the price higher. I think this is a good opportunity to squeeze out the people who got short positions in early on what appears to be a top forming.
Be prepared for a gap up on the next open. In which case, I still ...
Medium term traders shouldn't be shorting this yet. We still have positive momentum on the MACD. Also, I think it's a bad sign to see buyers willing to come in and drive the price higher after a gap down today. I think this still needs more time before heading down.
A top appears to be forming on USO but medium term traders should not short yet. Looking at the MACD we still see positive momentum going on. It is safer to wait until we start seeing the MACD cross towards the downside before we look to short this.
Look for price to hang out in the price range box for several days before moving down. If you want to open a position towards the top of the price range box that is fine. Personally I'm going to wait for some sort of failed breakout towards the top of the price range before getting involved on the short side.
USO is in a shorterm uptrend and could continue up to around 11.38 within the next several days. I would look for a slight pullback and buy on strength around the 10.60-10.70 area. Stop would go around the 10.50 area.