I’m looking at a make or break decision in USO today and here’s why. It’s all about the symmetry!!
If you look at this daily chart of USO, you can see where the prior two rally swings lasted $2.20 and 2.18 before the market rolled over in the past. In today’s session we are testing key resistance that INCLUDES symmetry projections along with a few other key Fibonacci price relationships giving us a price cluster decision at the 33.14 – 33.39**** area. So far the recent high has been made at 33.11 which is $2.11 up from the November lows. This swing is very similar to the two prior swings up.
Bottom line, this is a key resistance decision in USO. A failure to clear this zone tells me to take my sell triggers against it. If the trade starts to go in your favor, get to a breakeven stop ASAP and then trail it.
The potential downside target comes in at 30.43. If this same resistance decision is cleared, I will back off the sell side until further notice!