After making all-time new lows right at 33.00, the US Oil Fund ETF (NYSE: USO) has bounced to the 33.60/80 area so far…but needs to challenge and hurdle 34.25 to begin to get any real traction on the upside -- for continuation towards my optimal next recovery target at 35.70-36.20.

Barring a challenge of 34.25, the price structure will need to back and fill, and develop a near-term base pattern between 34.00 and 33.00 to generate the requisite technical strength to inflict some damage to the downtrend from the 12/15 high at 40.73. That trendline cuts across the price axis in the vicinity of 35.20/30.

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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