USO has been down in the dumps for over two months now, hanging around $31-32 supprot level. While its been good for us at the gas pumps, its not be so for Oil and Gas companies. I don't see a huge upside for this given the talks of recession possibilities with Fiscal Cliff, but i do think we may have a tradeable bounce to the upper end of the channel. I'm also seeing some of the oil stocks come to life, so it may be worth a try. Way to play - Buy USO, or 2x long ETF UCO, or pick an Oil and gas company. Here are some charts for your consideration -
USO - Key is volume as if it cross 50SMA. If it drops to 20SMA you can also try bounce play.
APA - Looks the best here. Look for continuation
NFX - Has had a decent run from the lows. I played it for 50cents in 25s but looks good for another 3-5% play.
OXY - Looks similar to APA
SD - This one looks interesting for a bounce play right here or if it drops to 20SMA. Watch it closely.