United States Oil (USO) escalation in the Sino-American trade spat raising the potential to dent energy demand

United States Oil (USO) escalation in the Sino-American trade spat raising the potential to dent energy demand

United States Oil (USO) escalation in the Sino-American trade spat raising the potential to dent energy demand

U.S. crude-oil prices declined Thursday, while global benchmark prices ended a few pennies higher, with escalation in the Sino-American trade spat raising the potential to dent energy demand.

Those concerns have more than offset the price-supportive weekly decline in U.S. crude inventories reported Wednesday, though traders continue to keep watch on growing tensions between the U.S. and Iran, which raises the threat of disruptions to Middle East output.

West Texas Intermediate crude for June delivery CLM9, +1.05% fell 42 cents, or 0.7%, to settle at $61.70 a barrel on the New York Mercantile Exchange, after a 1.2% rise a day earlier. Prices were on track for a weekly loss of 0.4%.

Global benchmark July Brent crude LCON9, +1.01% added 2 cents, or 0.03%, to end at $70.39 a barrel on ICE Futures Europe. The contract was headed for a weekly decline of about 0.6%.

President Donald Trump said on Wednesday that China “broke the deal” in trade talks and is set to face stiffer tariffs. His stance has weighed on stocks this week and sent equities and other risk-on markets lower again Thursday. Already, higher tariffs are set to take effect early Friday, during Chinese Vice Premier Liu He’s two-day visit to Washington which started Thursday.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 13.34.

The projected lower bound is: 12.31.

The projected closing price is: 12.83.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 22 white candles and 26 black candles for a net of 4 black 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).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 33.2308. This is not an overbought or oversold reading. The last signal was a sell 10 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 45.36. 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 -90. This is not a topping or bottoming area. 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 10 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.080 at 12.810. Volume was 18% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open High Low Close Volume___
12.820 12.870 12.684 12.810 19,192,148

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

Moving Averages: 10-period 50-period 200-period
Close: 13.00 12.72 12.78
Volatility: 33 26 37
Volume: 28,682,924 21,589,506 24,974,820

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 0.2% 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 4 periods.

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