USO breaks below Thursday's low
United States Oil Fund (USO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
USO finished the week 14.2% higher at 25.57 after losing $1.03 (-3.87%) today ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 25.88, the ETF confirmed its breakout through the prior session low after trading up to $0.82 below it intraday.
Daily Candlestick Chart (USO as at May 22, 2020):
Friday's trading range has been $1.09 (4.18%), that's slightly above the last trading month's daily average range of $1.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for USO.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 21.37. The last time this happened on January 6th, USO lost -0.23% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 27.49 where further buy stops could get activated.