technical bounce

USO chart so far is really interesting to me. Yes, it has lost all of its short-term moving averages that include the 5-day, 10-day and 20-day, but overall, the pullback that has, until today, lasted six straight days and seven of the last eight days, has only given up 38.2% of its recent gains, which if you remember correctly, is a nice Fibonacci retracement level. 

So for me, USO represents a good entry price right now with a stop-loss below the March 15th lows at $9.57. 

It is a nice risk reward on a very volatile commodity of late. 

Here’s the chart:

uso retracement 38 percent