Oil and OPEC Focused on USO Price Action

October 09, 2023, 10:30 am ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

OPEC is defending its primary industry with a report today that they expect oil demand to surge in coming years, but that comes after a nod by Saudi Arabia late last week that it may actually shift its tight policy stance.  

Ultimately, the Saudis do not want to cause economic damage from too-high oil prices, and it looked like that was set to happen after oil's sharp price decline after the last OPEC meeting.

Now, Israel is causing undualtions, but the price of US OIl (NYSEARCE: USO) is telling us yo moderate expectations for higher levels, unless resistance breaks higher.

Look at the chart below, and tade accordingly.  Real time updates are also avilable to subscribers of Stock Traders Daily.

Longer Term Trading Plans for USO

• Buy USO slightly over 71.03 target 77.41 stop loss @ 70.82 Details

The technical summary data tells us to buy USO near 71.03 with an upside target of 77.41. This data also tells us to set a stop loss @ 70.82 to protect against excessive loss in case the stock begins to move against the trade. 71.03 is the first level of support below 77.29 , and by rule, any test of support is a buy signal. In this case, support 71.03 is being tested, a buy signal would exist.

• Short USO slightly under 77.41, target 71.03, stop loss @ 77.63 Details

The technical summary data is suggesting a short of USO as it gets near 77.41 with a downside target of 71.03. We should have a stop loss in place at 77.63though. 77.41 is the first level of resistance above 77.29, and by rule, any test of resistance is a short signal. In this case, if resistance 77.41 is being tested, a short signal would exist.

Swing Trading Plans for USO

• Buy USO slightly over 77.41, target 78.68, Stop Loss @ 77.19 Details

If 77.41 begins to break higher, the technical summary data tells us to buy USO just slightly over 77.41, with an upside target of 78.68. The data also tells us to set a stop loss @ 77.19 in case the stock turns against the trade. 77.41 is the first level of resistance above 77.29, and by rule, any break above resistance is a buy signal. In this case, 77.41, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short USO slightly near 77.41, target 74.52, Stop Loss @ 77.63. Details

The technical summary data is suggesting a short of USO if it tests 77.41 with a downside target of 74.52. We should have a stop loss in place at 77.63 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 77.41, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for USO

• Buy USO slightly over 77.41, target 78.68, Stop Loss @ 77.23 Details

If 77.41 begins to break higher, the technical summary data tells us to buy USO just slightly over 77.41, with an upside target of 78.68. The data also tells us to set a stop loss @ 77.23 in case the stock turns against the trade. 77.41 is the first level of resistance above 77.29, and by rule, any break above resistance is a buy signal. In this case, 77.41, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short USO slightly near 77.41, target 74.60, Stop Loss @ 77.59. Details

The technical summary data is suggesting a short of USO if it tests 77.41 with a downside target of 74.60. We should have a stop loss in place at 77.59 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 77.41, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

USO Ratings for October 09:

Term →	Near	Mid	Long
Rating	Weak	Weak	Neutral
P1	0	0	64.59
P2	72.46	74.52	71.03
P3	74.60	78.68	77.41

Support and Resistance Plot Chart for USO

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