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Friday, October 22, 2021

A Fatal Blow to Big United States Oil (USO) and the Coming Shift

$USO #Oil #Production #USA #Markets #Trading #Commodities

United States Oil
Ticker: USO
Price: $28.59

US Oil News

1900 to 2000 was truly oil’s century. But the future for oil looks grim as oil demand will peak around 2025-2026 and subsequently decline by as much as 50% by 2050.

This year, oil demand came crashing to a halt as the global economy shut down due to the Covid-19 virus.

Electric mobility is a death knell for crude oil demand. Electric passenger vehicles alone will represent at least 10 million barrels per day of lost crude oil demand.

The supermajors have no choice – it’s either adapt or die.

And at these critical junctures… there’s serious money to be made if you know where to look.

US Oil Price Performance

US Oil Market Data

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 30.37.

The projected lower bound is: 26.76.

The projected closing price is: 28.56.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 26 white candles and 21 black candles for a net of 5 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 71.6860. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.58. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 59. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.130 at 28.590. Volume was 50% below average (consolidating) and Bollinger Bands were 23% narrower than normal.

Open    High     Low     Close     Volume
28.830  29.010   28.585  28.590    2,802,970
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bearish
Moving Averages: 10-period     50-period     200-period
Close:           28.64         29.01         42.66
Volatility:      28            41            97
Volume:          4,495,398     4,885,196     10,223,274

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


UNTD ST OIL FUND is currently 33.0% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of USO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on USO and have had this outlook for the last 4 periods.

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