United States Oil (USO) eased after industry data showed a larger-than-expected build-up in stocks in the United States
Oil prices eased on Thursday after industry data showed a larger-than-expected build-up in stocks in the United States, although losses were limited by comments by U.S. Treasury Secretary Steven Mnuchin on a U.S.-China trade deal.
Global benchmark Brent crude oil futures was down by 47 cents, or 0.8%, at $58.95 a barrel by 0330 GMT.
U.S. crude oil futures were down 48 cents, or 0.9%, at $52.88 after earlier dropping more than 1% to a session low of $52.76 earlier.
U.S. crude inventories soared by 10.5 million barrels to 432.5 million barrels in the week to Oct. 11, according to the American Petroleum Institute’s weekly report, published ahead of official government stocks data due on Thursday.
It comes amid concerns about the global economy — and therefore oil demand — as data from the United States showed retail sales fell for the first time in seven months in September. That followed earlier data showing a moderation in job growth and services sector activity.
Still, hopes of a potential U.S.-China trade deal helped offset oil prices losses after Mnuchin said U.S. and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month.
“Overall, we are seeing a more constructive picture both in terms of the demand side of the equation with the partial agreement from the U.S. (and) also from a technical point of view. (Prices) are at close to the bottom end of trading range rather than the top,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.
But short-term pressure on oil prices will likely remain until U.S. government data on oil inventory is out later on Thursday, he added.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 11.48.
The projected upper bound is: 12.03.
The projected lower bound is: 10.25.
The projected closing price is: 11.14.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 38.2646. This is not an overbought or oversold reading. The last signal was a buy 8 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 44.48. 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 87 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 -12. This is not a topping or bottoming area. The last signal was a buy 7 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 2 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.080 at 11.140. Volume was 31% below average (neutral) and Bollinger Bands were 7% wider than normal.
Open High Low Close Volume___
11.010 11.230 11.010 11.140 20,483,292
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 11.09 11.52 11.86
Volatility: 25 48 39
Volume: 25,341,566 30,089,408 26,666,048
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 6.1% below 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 11 periods.