Monday, September 6, 2010

Where is Crude Oil ETF USO Headed on Tuesday?

Our Smart Scan Chart Analysis for the crude oil ETF....USO, is showing some near term rallying power. However, this market remains in the confines of a longer term downtrend that should be traded with tight money management stops.

Based on a pre-defined weighted trend formula for chart analysis, USO scored -75 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

+10......Last Hour Close Above 5 Hour Moving Average
+15......New 3 Day High on Friday
-20......Last Price Below 20 Day Moving Average
-25......New 3 Week Low, Week Ending August 28th
-30......New 3 Month Low in May
-75......Total Score

Here is a preview of our MarketClub Trade Triangle Chart Analysis and Smart Scan technology


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