United States Oil (USO) futures extend losses to a second session

United States Oil (USO) futures extend losses to a second session

United States Oil (USO) futures extend losses to a second session

Oil futures fell on Wednesday, after suffering a loss of nearly 6% a day earlier, pressured as Saudi Arabia’s output levels looked to recover much sooner than expected and the U.S. government reported a weekly rise in domestic crude inventories, following four consecutive weeks of declines. Prices briefly pared some of the losses in earlier dealings on the back of rising U.S. tensions with Iran. 

President Donald Trump announced via Twitter that he ordered Treasury Secretary Steven Mnuchin to “substantially increase” sanctions on Iran as U.S. intelligence indicated that the country was the staging ground for the recent attacks in Saudi Arabia. October West Texas Intermediate oil CLV19, +0.50% fell $1.23, or 2.1%, to settle at $58.11 a barrel on the New York Mercantile Exchange. It fell 5.7% on Tuesday, after a nearly 15% rise Monday.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 11.83.

The projected upper bound is: 13.07.

The projected lower bound is: 11.14.

The projected closing price is: 12.10.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 59.9291. This is not an overbought or oversold reading. The last signal was a sell 5 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 54.59. 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 67 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 60. This is not a topping or bottoming area. The last signal was a sell 0 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 25 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.190 at 12.100. Volume was 14% above average (neutral) and Bollinger Bands were 6% narrower than normal.

Open     High      Low     Close     Volume___
12.130 12.268 12.010 12.100 34,742,360
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 11.93 11.69 11.76
Volatility: 79 52 43
Volume: 40,150,104 31,460,940 27,781,518

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 2.9% 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 10 periods.

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