Crude Oil ETF USO has been really interesting since the start of the year. On the heels of a catastrophic fall due to inter-regional geopolitics and market share wars it has made a nice comeback, and yet I sometimes left wondering why. Even though U.S. rig counts have stabilized the world is still swimming in cheap oil and all offshore storage is currently filled to capacity. I therefore find it interesting that a massive head-and-shoulder patter may be developing in oil signalling a possible renewed fall. Upper resistance for this right shoulder is about $10.80. At the same time there's a possible massive ascending channel that just put in it's first hit at $9.20 and ready to make another wave of ascent. My longer term momentum indicators are unfortunately in favor of the first scenario!