United States Oil ETF ($USO) has printed a weekly sell signal following an extended move from $70 to $145, suggesting momentum exhaustion after a parabolic advance. The structure now reflects potential distribution at elevated levels, with downside risk increasing if follow-through selling confirms.
Geopolitical risk remains a key variable. Tensions in the Middle East are still elevated, and the Strait of Hormuz remains shut down — a significant supply-side catalyst. The technical setup now hinges on whether price can hold key support and consolidate, or if the sell signal marks the start of a broader corrective phase despite ongoing macro tailwinds.
