United States Oil Fund (USO)

[michaelscott]

This has made a textbook head and shoulders bottom. Price target should be 66 once the neckline is broken. I will long once it breaks 56. You could long now but no guarantee it will break that neckline.

I will post the first chart and then the second chart of a classic head and shoulders reversal. Last year, this traded at above 74 bucks at one point.

 

[michaelscott]

Here is a classic H/S.

 

[S2007S]

I used to trade this, no more though. Doesnt track the barrel as I thought it did in the beginning.

 

[michaelscott]

It doesnt track the spot. Its more of an actual fund that plays the oil futures...right???

 

[rcanfiel]

Quote from michaelscott:

This has made a textbook head and shoulders bottom. Price target should be 66 once the neckline is broken. I will long once it breaks 56. You could long now but no guarantee it will break that neckline.

I will post the first chart and then the second chart of a classic head and shoulders reversal. Last year, this traded at above 74 bucks at one point.

Heads & Shoulders barely work, if at all, under major studies. Find more useful things to drone about

 

[michaelscott]

We are almost there. Just closed at 53.53. I originally posted this when it was at 52.86.

I believe it will go to 66.

 

[AKUMATOTENSHI]

Quote from S2007S:

I used to trade this, no more though. Doesnt track the barrel as I thought it did in the beginning.

Oil would have to go $90.00 a barrel to get USO to $66.00 with out the usual monthly 2% contract roll over loss.

Akuma

 

[michaelscott]

I think oil is going to $103 per barrel.

This picture says a thousand words and I dont need to draw lines on it. You know the price will at least reach $77. If it makes it past then we go to $103

 

[stock_trad3r]

Quote from rcanfiel:

Heads & Shoulders barely work, if at all, under major studies. Find more useful things to drone about

i know


He doesn't ever post a single trade. Just lists these vague targets.

the H&S isn't very reliable. decending triangle much better.

 

[michaelscott]

Thats right (reply I dont see since its on my ignore list). A while back, I compiled a bunch of charts together that I posted up here about oil. The theory is that oil ran from late the 90s until the current time with a few calculated corrections. The correction in January is, in theory, a " macro measured move". It did a 50% retracement in January from the start of the climb in the late 90s.

Its going to get to 79 for certain. I believe it will make it past that number though and, when it does, it will most certainly go into the 100s.