United States Oil (USO) marks lowest finish since the end of March; Brent drops below $70

United States Oil (USO) marks lowest finish since the end of March; Brent drops below $70

United States Oil (USO) marks lowest finish since the end of March; Brent drops below $70

Crude-oil prices fell Tuesday, but settled off the session’s worst levels as increasing tensions between the U.S. and Iran and the threat of disruptions to supplies in the Middle East helped to offset worries that a protracted trade conflict between the U.S. and China will hurt energy demand.

The U.S. will deploy four B-52 bombers to the Middle East, in response to what the Trump administration said are threats of a possible attack by Iran on American troops in the region, according to a report Tuesday from CBS News.

The report “changed traders’ focus from trade war worries to real war worries,” Phil Flynn, senior market analyst at Price Futures Group told MarketWatch. “The switch from economic risk back to geopolitical risk the last few days has led to big swings both ways.”

For now, “geopolitical risk makes oil want to rally, but trade war and stock market risk wants to push it lower,” he said.

West Texas Intermediate crude for June delivery CLM9, +0.65% lost 85 cents, or 1.4%, to settle at $61.40 a barrel on the New York Mercantile Exchange, after touching an earlier low of $60.66. Prices posted the lowest front-month contract finish since March 29, according to Dow Jones Market Data.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 13.27.

The projected lower bound is: 12.23.

The projected closing price is: 12.75.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 23 white candles and 25 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 32.7543. This is not an overbought or oversold reading. The last signal was a sell 8 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 43.14. 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 sell 8 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 -133.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 8 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.340 at 12.730. Volume was 27% above average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
12.780 12.850 12.630 12.730 29,944,936

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

Moving Averages: 10-period 50-period 200-period
Close: 13.15 12.68 12.80
Volatility: 31 26 37
Volume: 27,708,304 21,571,736 24,994,636

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 0.5% below 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 2 periods.

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