In today's trader tip video, I'll explore an opportunity appearing on the Crude Oil ETF (USO) chart in the energy sector, states Chris Vermeulen of The Technical Traders.
Looking at the daily chart, the 200-day moving average is showing a major level of support since early 2021. Narrowing in on the shorter-term price action, crude oil has gone through a strong reversal pattern. A bull flag has formed that is pointing to higher prices. Using the Fibonacci extension, we can gauge that a 10% move to the upside is possible for USO ETF.
This tight pattern and potential upside target could play out over the next few trading session, or it could take a couple of weeks to unfold.