United States Oil (USO) Government data shows vast stockpiles of gasoline and other fuel in the United States

United States Oil (USO) Government data shows vast stockpiles of gasoline and other fuel in the United States

United States Oil (USO) Government data shows vast stockpiles of gasoline and other fuel in the United States

Oil prices ticked higher on Thursday, extending a winning streak into a ninth session, with gains capped by the lack of any clear resolution to U.S.-China trade talks and weak Chinese economic data.

U.S. West Texas Intermediate (WTI) crude oil futures ended Thursday’s session up 23 cents at $52.59 per barrel. The modest gain was enough to push WTI to a five-week closing high.

International Brent crude futures were up 30 cents, at $61.74 per barrel around 2:30 p.m.

Both benchmarks rose by around 5 percent the previous day, capping off a week-long climb that marked oil’s longest sustained rise since last summer.

Global financial markets had surged on hopes that Washington and Beijing may soon end their dispute and avert an all-out trade war between the two biggest economies.

EIA also reported that U.S. crude stocks fell less than anticipated last week, while gasoline and distillate inventories rose far more than expected.

To counter rising U.S. output, the Organization of the Petroleum Exporting Countries and its allies, including Russia, reached a deal to rein in supply that officially began in January.

Iranian Oil Minister Bijan Zanganeh said U.S. sanctions against his country were “fully illegal” and Tehran would not comply with them.

The OPEC deal had hung in the balance on concerns that Iran, whose crude exports have been depleted by U.S. sanctions, would receive no exemption and block the agreement.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 11.98.

The projected lower bound is: 10.09.

The projected closing price is: 11.04.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 18 white candles and 31 black candles for a net of 13 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 96.2367. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 58.13. 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 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 158.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 7 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.050 at 11.100. Volume was 28% below average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
10.890 11.140 10.850 11.100 21,177,996

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

Moving Averages: 10-period 50-period 200-period
Close: 10.17 11.27 13.46
Volatility: 38 55 39
Volume: 32,380,596 36,821,176 24,307,808

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 17.5% below its 200-period moving average and is in an upward 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 bullish on USO and have had this outlook for the last 2 periods.

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