Oil Holds Steady Eddie, Gasoline At New 52 Week Highs
This morning, the highly popular United States Oil Fund(NYSE:USO) is trading higher by 0.12 cents to $44.65 a share. The USO made a new 52 week high on April 8, 2011 at $45.20 a share. This level will still be minor daily chart resistance. Until the April high is breached on a closing basis traders should not expect a breakout in the USO.
The USO will have short term intra-day resistance around the $44.75 and $45.00 levels. Traders must also keep one eye on the U.S. Dollar Index. The U.S. Dollar, and the USO seem to trade inverse lockstep to each other.
The United States Gasoline Fund(NYSE:UGA) is trading higher this morning by 0.44 cents to $54.23 a share. This is a new all 52 week high for the UGA. The average price of gasoline in the United States is now $3.92 a gallon. Higher energy prices are a direct tax on the U.S. consumer. The Unites States Gasoline Fund has increased higher by 40.0 percent since the Federal Reserve announced its QE-2 program in late August 2010.