USO Crude Oil Symmetrical Triangle Pattern

USO (crude ETP) is approaching the apex of this symmetrical triangle pattern (60-minute chart) & could break either way. Although USO could reverse off either of the nearby support & resistance levels shown below (10.70 & 9.90), the direction in which this pattern breaks is likely to determine the next near-term trend in crude oil. Also note that the solar stock are likely to follow crude so a downside resolution of this pattern is likely to bring the solar stocks down as well and vice versa.

USO 60-minute Sept 28th

USO 60-minute Sept 28th

2017-03-08T21:19:28+00:00 Sep 28, 2016 11:08am|Categories: Gold & Commodities|Tags: , |6 Comments


  1. riverbirch September 28, 2016 12:38 pm at 12:38 pm



    • rsotc September 28, 2016 2:00 pm at 2:00 pm

      riverbirch- Normally, yes but just like crude/USO, the $USD is also coiling within an very similar triangle pattern (can be viewed on the daily chart) and this current triangle formation on the dollar comes after a very large, sideways indeterminable trading range, this current pattern can break either way. So while the outlook for the $USD based soley on the charts of $DXY/$USD is somewhat unclear, it still looks to me that the dollar is set to rally against the Euro & especially the Yen, which make up the bulk of the dollar index. A rising dollar is typically bearish for crude oil prices but with all the pricing distortions caused by the central bank’s intervention in the financial markets, anything can happen.


  2. rsotc September 28, 2016 1:51 pm at 1:51 pm

    USO reversed the bottom of the triangle (support) & has already made it back to the top of the pattern (offering an objective short entry with a stop on a 60-minute close above):


  3. murphydoc September 29, 2016 9:09 am at 9:09 am

    With the break upwards of the USO,would you go long now?


    • rsotc October 3, 2016 3:29 pm at 3:29 pm

      @murphydoc – I’m catching up on notifications to comment replies today & came across this one regarding possibly going long on that breakout above the 60-minute triangle in crude. While it would have been an objective entry for a short-term trade lasting a few days & could certainly morph into a multi-week or even multi-month swing trade, the daily charts of crude just aren’t clear enough for me to want to take any position in crude at this time. A lot like the equity markets, crude has been trading sideways for months now. Such sideways ranges often serve to run stops & even if not, can be quite frustrating to trade.
      Sorry for the late reply but if you took a long in USO following that breakout, it is still trading right around the high-point of that post-breakout rally, gaining over 6% with the first key resistance/target level around 11.15-11.20 (horizontal resistance best viewed on the 60-minute chart) so this is where I would likely be booking profits, had I taken a long on the breakout.


  4. murphydoc October 3, 2016 3:33 pm at 3:33 pm

    Thanks a lot.


Comments are closed.