United States Oil (USO) ends at a nearly 6-week high as new Saudi oil minister repeats commitment to production cuts

United States Oil (USO) ends at a nearly 6-week high as new Saudi oil minister repeats commitment to production cuts

United States Oil (USO) ends at a nearly 6-week high as new Saudi oil minister repeats commitment to production cuts

Oil futures rose Monday, marking their highest settlement in almost six weeks, after Saudi Arabia’s new energy minister signaled a continued commitment to production curbs.

West Texas Intermediate crude for October delivery CLV19, +0.40%  rose $1.33, or 2.4%, to settle at $57.85 a barrel on the New York Mercantile Exchange, while November Brent crude BRNX19, +0.30%, the global benchmark, added $1.05, or 1.7%, to $62.59 a barrel on ICE Futures Europe. Both benchmarks scored their highest finish since July 31, according to Dow Jones Market Data.

Saudi Arabia’s King Salman on Sunday named one of his sons, Prince Abdulaziz bin Salman, as energy minister, replacing Khalid al-Falih, who had served as the kingdom’s top energy official since 2016.

The new Saudi energy minister “comes to office with unprecedented experience, knowledge of oil market economics/politics. He attended more OPEC meetings than any current OPEC official,” independent energy expert Anas Alhajji tweeted following the news.

Speaking on Monday, Prince Abdulaziz said the framework of Saudi policy wouldn’t change and that an agreement between the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to curb production by 1.2 million barrels a day would continue “with the will of everybody,” Reuters reported, while declining to comment on oil prices.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 12.84.

The projected lower bound is: 11.31.

The projected closing price is: 12.08.

Candlesticks

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 25 white candles and 25 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 81.9047. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 59.34. 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 60 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 161.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.310 at 12.080. Volume was 19% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open     High      Low     Close     Volume___
11.920 12.100 11.895 12.080 23,403,008
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 11.60 11.69 11.72
Volatility: 39 42 42
Volume: 26,461,744 28,726,224 27,753,894

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
UNTD ST OIL FUND is currently 3.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 3 periods.

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