UCO/USO: Let’s start with the daily charts. Price has moved higher than anticipated in my previous update as it kept extending (subdividing waves). Extensions/subdivisions can not be predicted/foreseen beforehand. They simple unfold as we track price higher and move stops higher. It’s a good thing 🙂 . UCO counts best as close to completing orange micro-4 of minute-v of minor-3 of intermediate-v. Hence, there’s still some more (choppy) upside left. I expect 3 to reach high-30s, then 4 back down to low-30s (prior resistance now support) and then minor-5 should complete this advance at around $40-$45.
The minor-3 target zone for USO is $14.50-15.75, and preferably the upper end of that range. Minor-4 should then move back to $14-$13.50 (S/R zone) before minor-5 targets around 15.75-16.25.
The weekly UCO chart seems to point to $40+. There’s no negative divergence anywhere yet, all TIs are on a buy. Note that we now need to bring up the possibility that a cycle-low was struck mid-2017 with a failed (blue) primary-V wave as the current advance is rather impulsive (5 wave structure). Yes, C-Waves are often 5 waves as well, but we need to be cognizant of the fact this is possible. If that was a slightly truncated 5th wave, then the current advance is major-1 of Primary-I of a new Cycle-wave!