United States Oil (USO) China Market Critical for US Oil

United States Oil (USO) China Market Critical for US Oil

United States Oil (USO) China Market Critical for US Oil

New Chinese tariffs are set to affect a wide array of refined products and plastics exports from Houston, but for now crude oil and liquefied natural gas exports are exempted.

Oil traders said they see the removal of US crude from the tariff list as temporary and not indicative of normalizing relations, or of crude oil being taken off the table in the US-China trade war.

This means that any new commitments to purchase US crude are fraught with risk, and new deals are unlikely to happen unless there are enough safeguards, such as options to resell or alternative destinations, oil traders said.

Shayne Heffernan ‘ China could hit the US with tariffs on oil and replace supply with Iran, Nigeria and Venezuela, they are also very close to Russia”

Overall, the bias in prices is: Sideways.

The projected upper bound is: 14.76.

The projected lower bound is: 13.29.

The projected closing price is: 14.03.

Candlesticks

During the past 10 bars, there have been 2 white candles and 6 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 23 black candles for a net of 2 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 30.2068. This is not an overbought or oversold reading. The last signal was a sell 11 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 45.58. 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 sell 29 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 -125.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 8 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.070 at 14.010. Volume was 32% above average (neutral) and Bollinger Bands were 55% narrower than normal.

Open High Low Close Volume___
14.010 14.050 13.681 14.010 27,384,348

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

Moving Averages: 10-period 50-period 200-period
Close: 14.15 14.07 12.96
Volatility: 28 33 29
Volume: 19,250,058 21,671,678 19,321,616

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 8.1% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 8 periods.

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