USO Oil Fund 2-Hour Chart Oversold Falling Wedge Positive Divergence

Here is a 2-hour for the oil play, USO. Reference the previous USO weekly and daily charts which indicate that a bounce in oil should be on tap. The 2-hour above displays a falling green wedge, oversold RSI and stochastics, and universal positive divergence across all indicators (green lines) which indicates a launch in price should occur. Considering all the shorts in oil the rally may be strong.

Price is extended below the moving averages so a mean revesion higher is needed. Oil should bounce higher at anytime. The only thing that could derail a rally would be a news event that would negatively impact oil prices.

Pundits, analysts and talking heads parade across television screens proclaiming doom and gloom ahead one trying to out do the other calling for 30 dollar oil, 20, do I hear 10? WTIC oil has a very good chance of holding the line at 32 this year and if not the 27-29 area would likely hold for 2016. In this near-term, oil should rally next week. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 4:21 PM EST:  UCO finishes the week at 9.98. Keystone added on the long side. USO is the single ETF for long oil and UCO is the 2x long oil. USO is at 9.80.