United States Oil (USO) finding added support from expectations Saudi Arabia has an incentive to underpin oil prices
Oil futures rallied on Tuesday, sending U.S. prices up by 4% to their highest finish in almost two weeks, following news that the U.S. will delay tariffs on certain Chinese products until December, as the two nations look to continue discussions on trade, easing fears about a global economic slowdown.
Prices had declined in early dealings on worries over the economic outlook were heightened by ongoing protests in Hong Kong and a possible crackdown by China.
Oil traders will get an update on weekly U.S. petroleum supplies from trade group the American Petroleum Institute late Tuesday. The EIA will issue its own report early Wednesday.
Analysts polled by S&P Global Platts expect the EIA to report a decline of 2.7 million barrels in crude supplies for the week ended Aug. 9. Gasoline stockpiles are also expected to fall by 700,000 barrels, but distillate inventories are forecast to climb by 870,000 barrels for the week, the survey showed.
Back on Nymex, September gasoline RBU19, +1.09% rose 7.1 cents, or 4.3%, to $1.7364 a gallon, while September heating oil HOU19, +0.91% added 7.2 cents, or 4%, at $1.8773 a gallon.
September natural gas NGU19, -0.85% tacked on 4.2 cents, or 2%, at $2.147 per million British thermal units.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 11.83.
The projected upper bound is: 12.15.
The projected lower bound is: 10.57.
The projected closing price is: 11.36.
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 24 white candles and 24 black 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 65.8610. This is not an overbought or oversold reading. The last signal was a sell 0 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 46.14. 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 44 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 -27. This is not a topping or bottoming area. The last signal was a buy 4 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 down -0.090 at 11.350. Volume was 8% above average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
11.300 11.420 11.220 11.350 30,150,650
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 11.31 11.64 11.83
Volatility: 46 43 42
Volume: 36,563,944 30,125,756 28,422,136
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 4.0% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on USO and have had this outlook for the last 11 periods.