The United States Oil Fund (USO) is an exchange traded security designed to track the movements of light, sweet crude oil ("West Texas Intermediate"). USO issues units that may be purchased and sold on the NYSE Arca.
Let's have a quick look at the chart:
1) In July 2008 we had a sell signal when the price crossed the 35-day moving average to the downside
2) Trendline was broken at the end of February 2009: a first buy signal
3) The moving average is now moving up after having gone down over the last 8 months.
4) Price has now crossed the 35-day moving average to the upside: another buy signal and an indication that oil price may have finally have reached its bottom mid-February.
I buy USO today at 30.28$ with a stop loss at 25.5$.
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