The travails of oil are known to all investors. Last summer, people turned to commodities as they were among the only asset classes working. With press reports decrying the role of speculators driving up the cost of energy products, oil closed above $145 on July 3. Since then, a cooling global economy, ineffective actions by OPEC and massive margin calls drove the price per barrel to $31.41 on Dec. 22 (a 78% drop in five months). Since the December low, many rallies have failed as the persistent downtrend has quelled each rally. As illustrated in a chart that traces the peak in July to current levels, oil has exhibited a classic fan pattern. With a fan, the trend has not fully reversed until the final of three trend lines has been violated. With respect to oil, this would require a move through $65 per barrel. While risk-averse traders may prefer waiting for such a price move to confirm that it is now safe to re-enter the commodity markets, I have seen enough positive attributes to warrant immediate action. With a strong rally on Friday, oil prices have violated the first of three major downtrends. Further, the shares are trading above the 10-day and 50-day moving averages. With the 10-day MA turning higher, I expect it to serve as support for a rally that should move toward the two remaining downtrends ($53 and $67). By using the 10-day MA as a stop loss order, a long position in oil offers tremendous upside with minimum downward risk. For individual investors, the U.S. Oil Fund ( USO) offers an excellent option for owning oil. Using oil's 10-day MA as a stop loss (currently $39.41), I recommend USO as this week's technical trade.