PowerShares DB Oil ETF
Another oil ETF that's (not surprisingly) showing a similar setup is the PowerShares DB Oil ETF (DBO). There are a few structural differences between USO and DBO -- the most notable being the expense ratios and the way each fund deals with roll yield on the futures contracts they use to track the price of oil. That's most evident in DBO's technicals right now: This fund is at an earlier stage than its more popular peer.
For DBO, the price level to watch is $27. A breakout above that level makes for a solid entry opportunity on this name. Of the two oil funds, DBO is showing less technical strength than USO. That said, it's the better choice for traders looking for a second chance at a breakout.
To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.