It fees like USO has been zigzagging between its weekly support and resistance forever…
The ETF saw its best respected weekly support and resistance bands converge and tighten for weeks and months, while it was “trapped” inside. The bands have not let it out.
Until last week.
USO made a substantial move outside of the narrowing tunnel, and violently broke below support:
That pattern took a long time to develop.
With this ‘declaration’ by the ETF, market participants may adjust their positions or enter new ones. Therefore, this price action could have been only the first wave.
We’ll stick around to follow USO.
USO’s animated GIF has gathered some fans…
Here’s the updated GIF showing USO’s price action between its best respected MA support and resistance’s bands over time:
