I have an interesting setup in the $USO. The recent low in this ETF was made directly within a grouping of Fibonacci timing cycles that you can see on this daily chart below. We did fall a bit short of ideal support however. The cycles came due between 10/22-25 and alerted us to watch for a possible low and buy triggers in this ETF.
Now we have seen short term buy triggers already, but I have to warn you that this market is already at a rather important resistance hurdle that comes in at the $35.59 – $35.99 area.
Here’s what I want you to watch for: If we can clear this hurdle ($35.59 – $3599) by a decent margin in the coming sessions (50 cents or so), I want you to buy the pullbacks and look for at least a deeper upside correction and possibly more with a potential upside target in the bigger picture at the $40.89 area. Even if we ONLY get a corrective rally we should see a rally to around the $37.65 area at a minimum. The maximum risk should be defined below the 10/24 swing low. You can refine your risk further by using the intraday charts also.