USO Catches Fire, Watch These Resistance Levels
This morning, oil is catching a bid higher on the back of a weaker U.S. Dollar. The popular and highly traded United States Oil Fund(NYSE:USO) is trading higher by 0.70 to $34.29 a share. Traders can watch for intra-day resistance around the $34.50 and $34.95 levels. It is also important for traders to follow the U.S. Dollar Index very closely. Whenever the U.S. Dollar Index strengthens intra-day oil will often pullback.
Many leading energy stocks are trading higher this morning as well. Leading integrated energy stocks such as Chevron Corp.(NYSE:CVX), Exxon Mobil Corp.(NYSE:XOM) and ConocoPhillips(NYSE:COP) are trading higher on the session. These stocks also have a tendency to trade inverse to the U.S. Dollar Index, therefore, traders must continue to follow the U.S. Dollar Index chart at all times.