USO Watch

The exchange-traded fund that tracks oil, (USO), is showing bull phase on Person's Proprietary Signal as the price breaks above resistance that has been tested five times in nine trading days.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
USO $34.84

The move comes nine trading days into bull phase on the parabolic sar and macd. The pps also moved into bull phase nine days prior, but then on June 4 turned bearish for four days. Today's phase switch brings the pps back into line with the other major signals.

Reversal Levels

• $42.19, +21.1%
• $37.50, +7.6%
• $34.84 <== You are here.
• $32.87, -5.7%

Today marks the third higher high and low in a row. The first two up-days were accompanied by rising volume. Trading needs to exceed 16,200,000 shares to keep that volume momentum going.

Longer term, USO has been trading sideways since the summer of 2009, after declining during the 2008 recession from $119.17 to $22.74. A break above the $42.19 level would wipe out the last major upsdie resistance set after the 2008 high.

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.