Best Financial Markets Analysis Article The US Oil Trust ETF (NYSE: USO) has plunged over 6% from its early morning rally peak, which is not a surprise from a volatility perspective, but it is a surprise to me IF I thought that a more bullish pattern was under development. In other words, the plunge in the USO has taken back too much of its prior rally to be considered the start of a new bull move.

The entire upmove from the Dec 5 low at 33.08 to this morning's high at 40.73 likely completed the initial rally phase of an intermediate-term period of oil price recovery. If my work proves correct, then somewhere in the vicinity of 36.90-37.10 the USO should stabilize and pivot to the upside for another loop up towards 42.00-43.00.

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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