Oil staged a historic breakout driven by escalating Strait of Hormuz headlines, but momentum indicators suggest the move may be extended. ETF flows and price action in $USO and $ERY reflect increasing volatility and potential exhaustion.
On the weekly time-frame, $USO recently generated a buy signal off the $11 support level, confirming a higher-low structure and shifting intermediate-term bias to the upside. The key question now is whether price can sustain follow-through above resistance or if this becomes a news-driven blow-off move.
