United States oil fund has been a regular guest in our pages, thanks to its disciplined price action.
Recently USO has been hanging around its ascending support area for ten weeks. The U.S. oil fund has been liking its 130-week SMA and 139-week SMA lines as support. Five week ago USO said goodbye to its support area and took off:
USO closed last week at $76.33, which is now closer to its respected moving average resistance lines, defined by the 309-week EMA ($81.50) and the 318-week EMA ($82.81).
For quite a long time now, the ETF has been trading inside a narrowing tunnel, where the floor and ceiling are set by the MA support and resistance lines, respectively.
USO has no obstacles on the way to meet resistance. We’ll be right here, watching.