United States Oil (USO) not be growing quite as fast as everyone thinks

United States Oil (USO) not be growing quite as fast as everyone thinks

United States Oil (USO) not be growing quite as fast as everyone thinks

U.S. oil prices settled lower on Tuesday, contributing to a loss for the month of July. Prices on Tuesday saw pressure as concerns about Iranian oil eased back, even as President Donald Trump’s willingness to meet Iran’s president was not expected to influence U.S. sanctions on Iranian oil, which are set to begin in November.

September WTI oil CLU8, -0.55% settled at $68.76, down $1.37, or nearly 2%, for the session. The contract lost roughly 5.1% for the month. Based on the front-month contracts, prices lost 7.3%, according to WSJ Market Data Group.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 15.06.

The projected lower bound is: 13.49.

The projected closing price is: 14.28.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 54.3624. This is not an overbought or oversold reading. The last signal was a sell 2 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 50.26. 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 20 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 24. 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 1 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.260 at 14.280. Volume was 21% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
14.380 14.400 14.240 14.280 16,243,925

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

Moving Averages: 10-period 50-period 200-period
Close: 14.27 14.04 12.80
Volatility: 19 36 28
Volume: 19,654,230 22,203,884 19,114,526

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
UNTD ST OIL FUND is currently 11.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 23 periods.

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