United States Oil Fund LP (USO) is setup with a bullish flag pattern.
Combining the objectives for the flag along with the larger symmetrical triangle, which USO exited mid-August, gives two price targets very close to each other.
The beginning of the flag pole is calculated as $37 and the top is $41.92, hit October 21st, giving us a distance of $4.92. Then taking the breakout price of the flag as $41.13 (resistance on October 29) and adding $4.92 gives us a minimum price objective of $46.05 or 12 per cent from the breakout.
USO ETF Chart – Bullish Flag
In the bigger picture, as seen in the following chart, USO had previously broken out of a larger symmetrical triangle. The measuring objective of the triangle is $45.93, only $0.12 cents away from the flag objective. Combined, we have a zone of potential resistance determined with two separate measuring objectives between $45.93 and $46.05.
The symmetrical triangle measuring objective is using the low of $31.57 from July 13 and the trend line level straight above it estimated at $39.50, for a difference of $7.93. Adding the difference to the breakout of the triangle at $38, gives us $45.93.
USO ETF Chart – Pattern Objectives
