USO Chart – Premarket July 20, 2009

I charted USO before the markets opened on 7/20/09.  On Friday it closed at $34.24 and is up in premarket trading.  USO looks to have more upside potential than downside risk from here.  It found support on its long trend line of higher lows at the beginning of last week.  That line coincided with the 100 day moving average to give stronger support there on a revisit south.  USO also just closed above its 10 day moving average on Thursday, stayed above it today and is starting off positive this morning.

The upside could see resistance at the 50 day moving average which is hovering around where USO landed after it gapped down at the beginning of July.  After that level, USO might have up until its trend line of lower highs near $37.50 today.  Last, but not least, Williams %R broke above oversold a couple of days ago on the 14 and 28 day indicators.  That always adds to my bullish sentiment for a stock or ETF.

I’m selling naked puts this morning, out of the money to give me a cushion while it bounces around.