CMI: Pull Back at a Support Level

After price break out(red circle), CMI is pulling back at a horizontal support level. If this level can provide a good support, this stock will have a longer running up.

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.

ICE: Will have a huge run!

On 09/25/2007, ICE was selected as one of the component stocks in the S&P 500 index. On this day, the volume reached nearly 20 million shares and the stock also had a huge jump. The jump brought ICE completely out of the short term down trend channel.

Let's review ICE's past performance first. After its debut, the stock kept running up for almost half a year, then it had a major correction along with the broader market correction in last June. Then ICE soared up for almost 8 months. Then there came a big correction again. A couple months ago, ICE made its all time high again. Since then, it was in a down trend.

From the chart, we can see there are three higher pivot highs and three higher pivot lows(the short red line is a low at close and it's not a pivot low, the long leg is an extreme value). In summary, what ICE did in the past two years was: a short run, a long and big run, and then a healthy consolidation.

Now, the real good news is the huge volume on 09/25/2007. It is almost the same amount as the debut volume. More importantly, it accounts for 1/3 of the total number of outstanding shares. Talking about accumulation, what else can be a larger accumulation than this one? Simply speaking, the supply of this stock will be in short, no matter the demand is up or down. Hopefully, this effect could be seen soon and for a long time.