The United States Oil Fund ETF ($USO) has dropped sharply over the last two weeks of trading, selling off from $38.00 to $34.60. However, $USO may be on the verge of a nice Turkey Day bounce heading into the end of the week. Read More..
L3 Support
The daily chart of $USO shows price has fallen sharply to $34.60 from the $38 level over the last two weeks. However, price is beginning to respond to the $34.60 support level, which corresponds perfectly with the monthly L3 Camarilla support level. This level is traditionally seen as a bullish pivot level and tends to lead to key price reversals back toward H3 resistance, which is $35.75 in this case.
You’ll also notice that a bullish Wick Reversal signal has fired on the current candlestick right at L3 support. This bit of confluence also strengthens this area of support, as buyers already seem to be entering at current levels.
If price remains above $34.50, look for price to rally to between $35.75 and $36.30 over the next week of trading.
Let’s see how this plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
