United States Oil (USO) steadies but oversupply fears persist
Oil prices pared gains on Monday (July 1) after worries about oversupply persisted, pulling back from an early rally as Opec extended supply cuts until March 2020 during a meeting in Vienna.
The Organization of the Petroleum Exporting Countries agreed on Monday to extend oil supply cuts until March 2020, three Opec sources said, as the group’s members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring US production.
Brent crude futures for September delivery settled up 32 cents a barrel at US$65.06. During the session, they touched an intraday high of US$66.75. The August delivery contract closed at US$66.55 a barrel on Friday.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 13.04.
The projected lower bound is: 11.48.
The projected closing price is: 12.26.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 3 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 25 black candles for a net of 3 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 61.9178. This is not an overbought or oversold reading. The last signal was a sell 1 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 58.56. 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 12 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 81. This is not a topping or bottoming area. The last signal was a sell 1 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 10 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.240 at 12.280. Volume was 28% above average (neutral) and Bollinger Bands were 42% wider than normal.
Open High Low Close Volume___
12.440 12.445 12.106 12.280 31,351,348
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 11.93 12.26 12.36
Volatility: 36 42 40
Volume: 31,991,422 28,123,866 27,090,532
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 0.6% 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 4 periods.
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