For investors seeking momentum, United States Oil Fund (USO Quick QuoteUSO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 35.5% from its 52-week low price of $57.83/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

USO in Focus

USO is the most popular commodity ETF in the oil space. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. The fund has 0.60% in expense ratio (see: all the Energy ETFs here).

Why the Move?

The oil segment of the broad commodity market has been an area to watch lately, given the soaring oil prices. Oil rallied to the highest level this year driven by the additional supply cuts from major oil-producing nations, Saudi Arabia and Russia, as well as declining inventories in the United States. Additionally, optimism around demand recovery is growing, leading to a spike in oil prices.

More Gains Ahead?

It seems that USO might remain strong, given a higher weighted alpha of 19.80 and a low 20-day volatility of 17.58%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.