The government reported a decline in crude inventories and this news sent the United States Oil Fund ETF (USO) to new highs. This report may have sparked today’s move, but a new high is not that surprising given the strong uptrend in oil. After breaking resistance in February, USO consolidated and broken resistance turned into support. Chart 1 shows the ETF successfully testing support around 79–80 in late March and early April. With a gap up on Monday and a strong gain today, USO moved to a new high to affirm the current uptrend. This move also reinforces support around 79–80. The bulls are in good shape as long as this level holds.
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