USO faces technical pullback risk due to being overbought, though Middle East conflict may push price to $116 target before reversing.

Next up into US oil. You can see US oil, as I described, continued pushing higher today. Only two days of consolidation. Now, we saw this occur back further on the chart in September 2nd when price action initially broke above this neckline of an inverse head and shoulders pattern that has a targeted measured move up here at $116.

Uh but right now, oil says it doesn't really want to pause or pull back even though, look at this. We're overbought. We're past the 70 threshold on the daily time frame for US oil.

So, we're due for some sort of technical pullback that very well could come right up here at the next resistance 108.26 near-term support down here at $9319. I've moved that up ever so slightly because of today's continued advance on US oil.

Now, one thing I want to point out that's very interesting. One of the best parts about our live day trading room, guys. We've got so many members throughout the course of the world, all of which are very educated in stocks and technical analysis, some of which provide great insight like this parallel channel that I'm putting together for you right now.

You can see much like I was anticipating, we're overbought. We're in extended uh place on the chart near-term on the place on the uh on the US oil chart. We should be pulling back, guys.

We should be seeing some sort of profit taking, but with the backdrop of everything going on in the Middle East, I don't see any peace resolutions. Neither side are agreeing to come to the table.

So, we very well could just march straight up, remain overbought, and tag this $116 level. Nonetheless, we are facing serious resistance in doing so. The faster we move up, the faster we can move right back down, as illustrated right over here on the charts when this conflict all began. and big sharp moves up, big sharp moves down, big sharp moves up, followed by big sharp moves down.

So, you eventually are going to get that pullback, especially if the speed limit is broken and we continue moving up the charts in the fashion that we are.