Oil might be temporarily bottoming out here for the holidays...

The USO (Oil ETF) just broke through overhead resistance @ $37.50. If it can close above it then I would say the short term downtrend is now broken and that oil prices will stabilize for the next several trading sessions (likely the rest of the year). Of course if $37.50 is not broken, the downtrend remains intact.



By the way, hat tip to Brian Shannon over at AlphaTrends for his enlightening posts on key technical support/resistance levels. Listen to Brian talk for 2 minutes and you can tell that he has "ice in his veins" when he trades (a real objective student of the markets). He's a very cool customer, kinda like these guys:



Positions: Long NOV, ATW, FWLT