United States Oil (USO) sanctions on oil exporters Iran and Venezuela kept markets on edge while concerns that an escalating Sino-U.S. trade dispute could slow the global economy
Oil prices were mixed on Tuesday as U.S. sanctions on oil exporters Iran and Venezuela kept markets on edge while concerns that an escalating Sino-U.S. trade dispute could slow the global economy also kept crude somewhat in check.
U.S. West Texas Intermediate (WTI) crude futures were at $62.29 per barrel at 0135 GMT on Tuesday, 4 cents above their last settlement.
Brent crude oil futures were at $71.16 per barrel, 8 below their last close.
Analysts said there was a number of factors putting upward pressure on oil prices.
The United States is tightening sanctions on Iranian oil exports and on Monday said it was boosting its military presence in the Middle East.
Bank of America said rising supply from the United States, as well as from Saudi Arabia and Russia could soon weigh on prices.
The bank said “global oil demand growth is still decelerating … (and) further global GDP weakness into year-end would hurt oil prices.”
Global growth has been threatened by trade disputes between the United States and China.
Talks between the world’s two biggest economies hit a wall over the weekend, when U.S. President Donald Trump announced a raft of new import tariffs on Chinese goods.
Overall, Bank of America expects Saudi Arabia “to bring back oil production slowly as Iranian barrels exit the market”, but added that despite this relief Brent crude oil prices would likely have a price floor at $70 per barrel.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 13.62.
The projected lower bound is: 12.57.
The projected closing price is: 13.09.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 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 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 33.8235. This is not an overbought or oversold reading. The last signal was a sell 7 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 50.47. 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 7 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 -92. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 7 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.200 at 13.070. Volume was 60% above average (neutral) and Bollinger Bands were 36% narrower than normal.
Open High Low Close Volume___
12.790 13.105 12.789 13.070 37,932,024
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 13.26 12.65 12.80
Volatility: 30 26 37
Volume: 26,566,154 21,543,340 24,955,564
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 2.1% above 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 1 periods.
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