USO closes higher for the 2nd day in a row
United States Oil Fund (USO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USO ended Wednesday at 28.70 surging $1.18 (4.29%). This is the biggest single-day gain in over three months. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (USO as at Sep 16, 2020):
Wednesday's trading range has been $0.74 (2.62%), that's above the last trading month's daily average range of $0.62. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USO.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 28.21 (now S1), which is likely to act as support going forward. The last time this happened on August 3rd, USO gained 1.50% on the following trading day. Prices are trading close to the key technical resistance level at 29.17 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for USO. Out of 153 times, USO closed higher 52.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.17% with an average market move of 0.44%.