USO: Long Term Technical Analysis

This is a weekly chart of USO in two years. It's very clear USO has formed a solid inverted head-shoulder bottom. If we connected the neck line, we can see that in the red circle the neck line provided a strong support for the short term pull back. Since then, USO has made a good rally.

Based on the bottom and the neck line, we can obtain an approximate target line and we can also see that the target was reached in the last week. Just because of this reason, USO was very volatile in the last week(see the candle in the yellow circle). The investors were indecisive about wheter taking profit or making new highs.

Also a resistance line is hovering around $65. In short term, it is a challenge for USO. However, in a long term, USO is heading for a price break out.