United States Oil (USO) Saudi Arabia’s energy minister said he was sure inventories will start to “return to normal averages and this will increase confidence”

United States Oil (USO) Saudi Arabia’s energy minister said he was sure inventories will start to “return to normal averages and this will increase confidence”

United States Oil (USO) Saudi Arabia’s energy minister said he was sure inventories will start to “return to normal averages and this will increase confidence”

Oil steadied near $52 a barrel in New York amid signs that crude inventories fell again in the U.S., the world’s biggest consumer.

Futures slipped 0.3 percent after settling 3.2 percent higher on Tuesday. U.S. crude stockpiles fell by 560,000 barrels last week, an industry report was said to show, a smaller decline than that forecast in a Bloomberg survey before government data due Wednesday. Saudi Arabia’s energy minister said he was sure inventories will start to “return to normal averages and this will increase confidence” in the market.

Crude has stayed above $50 a barrel for a week, holding on to its advance this year after collapsing nearly 40 percent last quarter. The recent momentum has been spurred by improving trade relations between the U.S. and China, as well as the start of the 1.2 million barrels a day of pledged output curbs by Saudi Arabia, Russia and other major producers. Still, prices remain more than 30 percent below a four-year high in early October.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 11.96.

The projected lower bound is: 10.06.

The projected closing price is: 11.01.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 19 white candles and 30 black candles for a net of 11 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 62.7798. 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 56.53. 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 14 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 82. This is not a topping or bottoming area. The last signal was a sell 2 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 11 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.060 at 11.060. Volume was 9% above average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
10.950 11.070 10.821 11.060 32,753,268

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 10.67 11.03 13.42
Volatility: 38 56 39
Volume: 31,924,660 36,968,560 24,513,340

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 17.6% below its 200-period moving average and is in an upward trend. Volatility is high 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 6 periods.

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