Here’s the progression and target levels:
In the weekly membership, we had a sell-signal opportunity with negative divergences into the $54.00 target.
From there, price fell toward our $50.00 target and then beneath that as the downtrend accelerated toward $45.00.
Positive divergences and a momentum kick-off on May 5th set the stage for a possible early reversal.
We’re seeing confirmation of that reversal this morning with a breakout beyond $47.00 which reflects two (similar) falling trendlines and the 23.60% Fibonacci Level.
From here, look for a push at least toward $48.50 which is the 38.2% Fibonacci Retracement Level along with a prior price low.
We’ll tilt bullishly on Crude Oil (short-term/intraday) while price is above the $47.00 key pivot.
After closing up more than 3% on Wednesday, the United States Oil Fund LP ETF (NYSE:USO) rose an additional $0.14 (+1.42%) in premarket trading Thursday. Year-to-date, USO has declined -15.87%, versus a 7.31% rise in the benchmark S&P 500 index during the same period.
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