United States Oil (USO) South Korea first country to comply with the U.S. sanctions on Iran

United States Oil (USO) South Korea first country to comply with the U.S. sanctions on Iran

United States Oil (USO) South Korea first country to comply with the U.S. sanctions on Iran

South Korea has become the first of Iran’s top-three oil customers to fulfill a hard-line U.S. demand that buyers cut imports to zero.

The Asian nation didn’t import any crude from Iran last month, compared with 194,000 barrels a day in July, tanker-tracking and shipping data compiled by Bloomberg show. While bigger consumers China and India have curbed buying from the OPEC producer, South Korea’s gone one step further by halting purchases before the U.S. imposes sanctions on the Islamic republic on Nov. 4.

The Trump administration made the demand over Iranian oil after the U.S. president in May withdrew from a 2015 deal that lifted many sanctions on the Middle East nation in exchange for restrictions on the country’s nuclear program. South Korea heeding that call may signal America’s clout over the North Asian nation.

Trapped in a decades-long war in the Korean peninsula, the South’s government has relied on the U.S. to pressure the North’s leader, Kim Jong Un, to abandon its nuclear program. Political ties to America mean it can’t ignore Trump’s order for allies to adopt a tough policy on Iran, according to the Korea Energy Economics Institute.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 14.21.

The projected upper bound is: 14.83.

The projected lower bound is: 13.57.

The projected closing price is: 14.20.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 27 black candles for a net of 6 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 23.1289. This is not an overbought or oversold reading. The last signal was a sell 4 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 47.68. 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 48 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 -49. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.070 at 14.210. Volume was 51% below average (consolidating) and Bollinger Bands were 6% narrower than normal.

Open High Low Close Volume___
14.380 14.420 14.172 14.210 9,941,266

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

Moving Averages: 10-period 50-period 200-period
Close: 14.49 14.32 13.25
Volatility: 15 28 29
Volume: 13,179,238 19,690,530 19,201,964

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 7.2% 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 9 periods.

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