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Oil is due for bounce. USO could go up to 106-108 area. USO yesterday close is right on 38.2% Fibo retracement.
Because USO breaks the long term up trend line, any bounce is suspicious. If USO can not close above 106 and stay there for more than one day, it will resume the down trend. USO next target will be 94 and 88.
Oil and USO bounce is just coincide with market pull back.
USO Daily Chart
Oil and USO bounce will boost commodity stocks which recently had sizable retracement. One stock worth to notice is POT (and all fertilizer sector.) The POT ER beat ER estimate by 21c and guide high for Q3 and raise whole year 2008 target. After ER, Stock had strong price action from today's low and advanced more than $10+ despite massive down turn market.
Happy Trading. |
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