USO: All eyes are on oil these days as it appears in a free fall. We must say we haven’t noticed it at the pump yet… Anyway, price is stick in a triangle pattern (likely a larger 4th wave) and is very close to support. Given how oversold price is, though without any positive divergences on the TIs, we expect a bounce soon, to about 10.4-10.8, followed by lower lows; likely below 9.20. That should then finish this much larger correction and start a new rally in oil.
UCO: Same story as for USO, albeit slightly different as price did break below trenline support, but not yet below horizontal support (10.5). If the latter happens we expect $12 to fall eventually too. But before that there’s still support at the ascending black trendline as well. For now a several-day bounce seems to be the most likely scenario to alleviate some of the oversold conditions.
The weekly UCO chart shows nicely the range price has been stuck in and that it is now very close to support at $16. Further range-racing between $16-$24 can not be excluded.