USO, the leader of commodities
The price of USO – the US Oil Fund – went through a correction phase, the blue box, that brought price to its 50-day exponential moving average and the lower Bollinger Band. At this level price found some support, as the bulls didn’t let price fall any further.
Then price moved above its 10- day exponential moving average and reached the 20-day exponential moving average. At this point we will wait to see which group of the market participants, the bulls or the bears, will win the battle.
Apart from the above, MACD is close to its signal line, which will cross if there is more bullish momentum.
Finally, USO’s Relative Strength is moving above its signal line, as this ETF outperforms our benchmark in the last few sessions.