United States Oil (USO) Prices Amid U.S.-China Trade Jitters

United States Oil (USO) Prices Amid U.S.-China Trade Jitters

United States Oil (USO) Prices Amid U.S.-China Trade Jitters

Officials in China are troubled by U.S. President Donald Trump’s comment that there was no agreement on phasing out tariffs, according to the report.

U.S. Crude Oil WTI Futures dropped 0.2% to $57.03 by 12:13 AM ET (04:13 GMT), while International Brent Oil Futures slipped 0.1% to $62.36

Despite the slide, WTI is still up 25% on the year and Brent almost 16%.

Looking ahead, traders are also paying close attention to the upcoming Dec. 5-6 OPEC+ meeting.

“We are two weeks away from the next OPEC meeting, and nothing has changed on that front,” said Olivier Jakob of Zug, Switzerland-based oil risk consultancy PetroMatrix.

“At current prices and the upcoming Saudi Aramco IPO, there is nothing to expect from that meeting. The latest updates from OPEC and the IEA still point to a global petroleum stock-build in 2020.”

OPEC+ agreed in December 2018 to cut supply by 1.2 million barrels per day. As that agreement comes up for review in the next three weeks, members of the cartel have already been sounding out that it might not want to deepen cuts.

Traders also await weekly crude inventories reports from the U.S. Energy Information Administration and the American Petroleum Institute this week, which are due on Wednesday and Thursday respectively.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 11.59.

The projected upper bound is: 12.68.

The projected lower bound is: 11.11.

The projected closing price is: 11.90.

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 25 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 61.2611. 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 55.28. 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 110 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 41. This is not a topping or bottoming area. The last signal was a sell 6 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 -0.180 at 11.900. Volume was 10% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open     High      Low     Close     Volume___
11.980 12.010 11.830 11.900 25,071,720
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 11.92 11.62 11.95
Volatility: 18 42 38
Volume: 22,179,998 26,557,930 25,755,622

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 0.4% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 14 periods.

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