USO Plays The Path; Bulls Break Higher On Strong Oil Prices

USO has broken higher as anticipated and is now targeting the $180 level. Following the successful trajectory of our previous analyses, what should traders and investors expect next for this instrument?

USO (United States Oil Fund) is an exchange-traded fund (ETF) designed to track the daily price movements of West Texas Intermediate (WTI) crude oil. Instead of holding physical oil, the fund primarily invests in near-term WTI crude oil futures contracts traded on the NYMEX.

USO prices continue to surge, extending the bullish cycle that began in April 2020. Having gained over 800% since that low, the fund shows significant potential for further upside. The broad bullish trend is currently evolving as an impulse wave structure for wave ((3)). This aligns with the analysis originally presented in our March 8th blog post.

USO Monthly Elliott Wave Analysis - 8th March 2026 Update

Following a period of consolidation lasting over two years and ten months, the fund has successfully broken to the upside. Our current target for wave ((3)) sits between $188 and $238. In our August 27, 2026 update, we began tracking the wave ((3)) progression, identifying the price action as the development of wave 5 of (3) of ((3)). For a comprehensive visual breakdown, please refer to the USO weekly chart originally featured in our March 8th blog post.

USO Daily – 27th August 2026

Following the completion of wave 4 of (3) of ((3)), the price rallied from our blue box support zone. The subsequent impulse breakout marked the completion of wave ((i)), followed by a zigzag pullback for wave ((ii)). Recognizing this price action as a nesting structure, we anticipated a breakout to new highs to establish wave ((iii)) of 5. As illustrated in the chart, the market has played out exactly according to our analysis.

USO Daily – 21st October 2026

The latest daily chart indicates that the fund is currently unfolding in wave v of ((iii)) of 5 of (3) of ((3)), reaching a new high for the bullish cycle that began in late April 2020. In the short term, we maintain a bullish outlook and advise traders to look for buying opportunities on dips. The anticipated pullback in wave ((iv)), followed by wave (4), will provide ideal entry points to establish new long positions. As the broader bullish cycle remains active, we recommend continuing to build long exposure during these corrective phases. Stay tuned to the Elliott Wave Forecast blog for further updates and analysis on this instrument.