USO (Oil ETF) Chart Artistry, Trends, Targets and Bull Put Spread

I'm watching $USO and did some chart artistry (USO LavaChart™) on the oil exchange traded fund at FreeStockCharts.com. I'm watching $42 resistance and the recent trend break just above $40, which could act as support.  You can see it's testing the uptrend from February which hits that support level.  What will happen?  Will USO slide slowly through the uptrend to $40, break out to hit (1) or breakdown at (2).  I think USO is very interesting here because it's been in a sideways channel for months.  If oil spot spikes it could tip the oil futures curve into steep backwardation and yield dividends for the USO roll.  There's definitely a risk the US Dollar spikes and commodities take a hit, we shall see.  I'll break down oil, gold, silver, dxy and e-mini S&P futures in part 2, continuing from part 1 on ETFs. I added interesting USO headlines below the chart.

$USO (US Oil Fund LP) - FreeStockCharts.com

Recent articles on USO/Oil:

*United States Oil Fund LP ETF (NYSE: USO) bull put spread - ONN.tv (4/8/2010)

News From the Oil and Gas Front: How to Play Energy Sector ETFs (USO, PXE, IEO, UGA, RYE) - ETFTrends via SeekingAlpha

TradingMarkets Most Overbought and Oversold ETFs for Monday - TradingMarkets.com

Oil prices continued to slide for a third day on weak petroleum demand - AP

"The commodity is at the uppermost point of its range and could potentially add an additional $15 per barrel" - Minyanville

Energy at Crossroads, High Inventories Keep Crude Oil Prices from Advancing on Week - Guest Post by OilPrice.com

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