Monday, May 18, 2009

Wake me up when this "huge rally" in oil is done! Will $35.70 USO finish it?

Okay, not to be disrespectful as I'm enjoying the next leg up in this little rally in oil. But where is the pizzaz?! It hasn't even moved above the resistance line I marked on my chart of USO (see below)! I did run a quick calculation just now, that there can be a c=a symmetry level at $35.70 in USO. Looks like the pattern off the lows in USO can be an ABC pattern in which we'll see a small fifth wave on "C" that could get to $35.70. Volumes are light (as in the broad indices today, noted earlier). The movement is quite sleepy, especially compared to the movements dropping into the lows. That 200-day moving average is getting closer too. There are plenty of eyes on oil getting to $64 or $65, but I'm growing more concerned about what's around the corner after this rally's done. Well, I would be more concerned, if this meandering rally weren't putting me to sleep!

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