After forming a four-month interim double bottom the Oil ETF (USO) broke up through the neckline in the middle of February and has been consolidating since then in a small pennant - usually a continuation pattern. A measured move calculation gives us a potential target at ~39.5, the level of the past year highs.
Two horizontal counts from the fulcrum bottom on the short horizon S&P chart point to the same area (38.5 and 39.9). High volume on the last two upward breakout columns indicates that demand is strong. Right now the price is battling against the minor resistance at 36.75.
Also, pay attention that WTI Crude Oil has entered its seasonally strong period (chart from equityclock.com).
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