United States Oil (USO) supplies rose by a much more than expected 7.3 million barrels for the week

United States Oil (USO) supplies rose by a much more than expected 7.3 million barrels for the week

United States Oil (USO) supplies rose by a much more than expected 7.3 million barrels for the week

The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by a much more than expected 7.3 million barrels for the week ended March 1, according to sources.

The API also reportedly showed that gasoline stockpiles fell by 391,000 barrels, while distillate inventories declined by 3.1 million barrels. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude supplies climbed by 1.9 million barrels last week, according to a survey of analysts conducted by S&P Global Platts. It also shows expectations for inventory declines of 2 million barrels for gasoline and 1.4 million barrels for distillates.

April West Texas Intermediate crude CLJ9, -0.90% was at $56.23 a barrel in electronic trading, down from the $56.56 settlement on the New York Mercantile Exchange.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 11.55.

The projected upper bound is: 12.50.

The projected lower bound is: 11.22.

The projected closing price is: 11.86.

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 32 white candles and 18 black candles for a net of 14 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 43.7500. 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 57.53. 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 46 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 43. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.020 at 11.820. Volume was 34% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
11.910 11.930 11.760 11.820 20,474,732

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

Moving Averages: 10-period 50-period 200-period
Close: 11.81 11.00 13.06
Volatility: 30 38 39
Volume: 20,175,262 26,297,910 25,189,798

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 9.5% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on USO and have had this outlook for the last 1 periods.

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