United States Oil (USO) fell as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled

United States Oil (USO) fell as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled

United States Oil (USO) fell as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled

Oil prices fell 2% on Tuesday as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled amid ongoing negotiations, a grim sign for oil demand growth.

Trump sharply criticized what he called China’s unfair trade practices in a speech at the United Nations General Assembly, saying he would not accept a “bad deal” between the United States and China.

“He ratcheted up the U.S.-China trade war again,” said John Kilduff, a partner at Again Capital LLC in New York. “It wasn’t a constructive tone in trying to get that resolved, and we know how sensitive oil prices are to the back and forth.”

At the U.N. General Assembly, Trump denounced Iran, but said there is a path to peace, which somewhat eased the oil market’s worries about geopolitical risks, analysts said.

“So far, it doesn’t look like there will be a military response,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

Meanwhile, an extended Reuters poll forecast U.S. crude stockpiles were expected to have dropped last week.

The poll was conducted ahead of inventory reports from the American Petroleum Institute, an industry group, to be released on Tuesday at 4:30 p.m. EDT and from the U.S. government’s Energy Information Administration on Wednesday.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 11.84.

The projected upper bound is: 12.84.

The projected lower bound is: 10.94.

The projected closing price is: 11.89.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

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 17.0256. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 50.80. 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 71 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 -9. This is not a topping or bottoming area. The last signal was a sell 4 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 29 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.310 at 11.900. Volume was 3% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
12.120 12.150 11.860 11.900 29,593,292
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 12.03 11.66 11.78
Volatility: 79 51 43
Volume: 40,879,268 31,818,698 27,549,564

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 1.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 14 periods.

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