USO has been somewhat steady following a sharp reversal last month that forced a spate of short covering. A short position is a sale on a borrowed security. The investor needs to eventually return the borrowed stock by purchasing it back from the open market. If the price falls, the investor buys it back for less than he or she sold it for and pockets the profit. [Widening Contango Could Cut Into Popular Oil ETF’s Returns]
“Turning to the chart, we see the November Crude Oil contract continuing to trade in a narrow range. Prices have tested minor resistance near the 47.65 level. Prices may find additional resistance near the 49.25 mark. The RSI indicator is currently in neutral territory, but edging toward overbought levels,” according to Options Express
United States Oil Fund
