USO - Bullish signs in some energy stocks ? Implications for Oil ?

Is oil getting ready for a reversal and what of energy stocks in general?
Before the fall in oil we saw a lot of money coming out of energy heavyweights. Todays price action in USO combined with the falling wedge on the futures contract ( its not clear on USO ) to me is a signal [...]

Is oil getting ready for a reversal and what of energy stocks in general?

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Before the fall in oil we saw a lot of money coming out of energy heavyweights. Todays price action in USO combined with the falling wedge on the futures contract ( its not clear on USO ) to me is a signal to be on alert for a buy signal . We have hit our first fib level on USO at 99.81 and are left with a dragonfly. The volume isnt fantastic but when you look at some of the energy stocks there are some showing signs of recovery. CHK and GMXR are such examples. GMXR is covered in break out traders latest video at free trading videos and here is a chart of my own. CHK . Its made huge moves to the downside but seems to have bounced hard.

• Coincides with the 200 period moving average.
• Displayed very strong buying pressure with volume 350% of daily average.
• Previous level of resistance / support as per the chart.
• Bullish momentum divergance on the 60 minute chart.

This is one to keep an eye on but not for too long I feel. Airlines are showing weakness again so have we just seen the previous game of opposite moves between oil and airlines on a bigger scale ? I will assess tommorrows action but would feel safe to open a small position with a stop at 47 with a target of 59 bucks ( based on closing price of 49.06) . I will watch its first 30 minutes of trading and be ready for a quick entry especially if no selling arrives. If Oil looks like its plowing out new lows though I will give the position extra management time and perhaps scale out early. This stock is heavily owned by institutions and insiders.

In other energy stocks keep an eye on DUG , its looking a little wedge like on the daily / 60 minute and on the 60 minute there is a bearish momentum divergance on the macd. This inverse ETF loses value as energy related stocks go up. So there is some confirmation available and the whole clock work mechanism starting to wind might be getting ready to ” gong” in a new direction.