United States Oil (USO) prices settle at a more than 2-month high
Oil futures climbed Wednesday, with U.S. prices settling at their highest in more than two months as political turmoil in Venezuela raised the possibility of tighter global supplies and weekly U.S. crude stockpiles rose less than expected. March West Texas Intermediate oil CLH9, +0.55% rose 92 cents, or 1.7%, to settle at $54.23 a barrel on the New York Mercantile Exchange. That was the highest for a most-active contract since Nov. 21, according to FactSet data.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 12.30.
The projected lower bound is: 10.48.
The projected closing price is: 11.39.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 64.1096. This is not an overbought or oversold reading. The last signal was a sell 6 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 59.18. 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 23 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 174.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 20 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.240 at 11.400. Volume was 34% below average (neutral) and Bollinger Bands were 26% narrower than normal.
Open High Low Close Volume___
11.340 11.540 11.290 11.400 20,660,028
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 11.15 10.75 13.34
Volatility: 31 54 39
Volume: 28,737,712 35,310,900 24,975,326
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.
UNTD ST OIL FUND is currently 14.5% below 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 moderate flows of volume into USO (mildly bullish). Our trend forecasting oscillators are currently bullish on USO and have had this outlook for the last 15 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.