United States Oil (USO) Cartel issues internal warning as oil prices slide

United States Oil (USO) Cartel issues internal warning as oil prices slide

United States Oil (USO) Cartel issues internal warning as oil prices slide

Rising crude oil inventories and increased output in the U.S. could push oil prices down in the coming weeks, an internal OPEC report said Thursday.

A coming “seasonal scale back in refinery demand…could result in oil stock builds,” said an internal market report, which was circulated late Thursday within the Organization of the Petroleum Exporting Countries.

Earlier in October, Brent breached the $85-a-barrel level for the first time in roughly four years.  But prices have come under pressure in the past week, amid global stock market turmoil and signs of weakening oil demand.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 15.21.

The projected lower bound is: 13.93.

The projected closing price is: 14.57.

Candlesticks

During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 21 white candles and 25 black candles for a net of 4 black candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 21.6216. This is not an overbought or oversold reading. The last signal was a buy 2 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 39.28. 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 sell 10 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 -140.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.260 at 14.560. Volume was 17% above average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
14.560 14.760 14.510 14.560 23,906,660

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 15.23 14.74 13.75
Volatility: 28 27 29
Volume: 24,006,914 18,959,672 20,258,128

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.

Summary

UNTD ST OIL FUND is currently 5.9% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of USO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on USO and have had this outlook for the last 2 periods.

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