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Oil has formed an up channel PDF Print E-mail
Written by Our Staff Writer   

June 1, 2009: USO, the oil sector ETF, has formed an up trend channel creating buying and selling points at the top and bottom of channel. There also key support and resistance areas to watch out for.

Here goes our analysis on USO. Please view the chart by clicking the link at the end of the report.
  • USO has formed a nice channel and we'd use the red line shown on the chart as a profit target
  • The green line is an area where we'd buy. We'd also consider buying at the white line
  • Watch out for the yellow horizontal lines as these are support and resistance levels, which can turn price
  • Lines below current price act as support and the ones above are resistance.
  • Since the channel is trending up we'd favor the long side
  • Any short positions would be for a quick trade only

Chart Analysis

USO's chart analysis