Best Financial Markets Analysis Article I am not ready to step up to add the U.S. Oil Fund ETF (AMEX: USO) to our model portfolio just yet, but I am getting much friendlier to the idea technically. Looking at the weekly crude oil chart, it's the time of truth for nearby oil prices, as the price structure pressed against its 7-year support line in the $61.60 area, which was violated marginally this morning ($61.30), but NOT by 1-1/2% ($60.60), which would have triggered another bout of weakness to $55.00-50.00 next.

However, to get anything going on the upside, nearby oil must hurdle and sustain above key near-term resistance at $65.60-$66.10 to trigger a recovery rally towards $72-$76. Thus far today, the high is $65.77…so the technical situation certainly is getting more interesting.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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