Despite commodity bashing by Goldman Sachs again this morning, oil prices remain relatively buoyant.

Right now my pattern and momentum work in the U.S. Oil Fund ETF (USO) indicate that a significant correction ended at Wednesday's low at 42.10. They also indicate that current strength represents the initiation of a new upleg in an incomplete larger bull move that projects to another new high in the days directly ahead.

At this juncture, only the inability of the USO to hurdle and sustain above 44.00/10 will compromise my current outlook.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.