Oil ETF a Good Long-Term Buy

United States Oil Fund LP (NYSE: USO ) — This exchange-traded fund (ETF) tracks the performance, less expenses, of the spot price of West Texas Intermediate light, sweet crude oil.  In August, USO turned the corner after forming a double-bottom and rallied through its bearish resistance line in late September. Since then, it has established a tight and orderly bull channel, and yesterday flashed a new golden cross (the 50-day moving average crossed through the 200-day moving average) for a strong buy signal. But several days ago, the price reversed from the top of the channel and will most likely retreat back to the conjunction of the 50- and 200-day moving averages where it is a buy at $36. The target for a trade is north of $39, which marks the top of the channel, and longer term it is likely that USO will again test its 52-week high at just north of $42. If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .
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