United States Oil (USO) tensions between the U.S. and Saudi Arabia

United States Oil (USO) tensions between the U.S. and Saudi Arabia

United States Oil (USO) tensions between the U.S. and Saudi Arabia

The U.S. oil benchmark edged higher on Tuesday, finding support as traders watched developments tied to tensions between the U.S. and Saudi Arabia over a missing Saudi journalist, which could lead the Saudis to curtail crude output. Prices also got a boost after S&P Global Platts reported, citing sources close to the project, that talks between Saudi Arabia and Kuwait over two shared oil fields have broken down.

The breakdown of the talks is equivalent to the Saudis and Kuwaitis agreeing to cut production by 500,000 barrels a day, said Phil Flynn, senior market analyst at Price Futures Group. S&P Global Platts said that the fields were expected to produce some 500,000 barrels of oil a day. November West Texas Intermediate oil CLX8, +0.13% rose 14 cents, or 0.2%, to settle at $71.92 a barrel on the New York Mercantile Exchange.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 14.83.

The projected upper bound is: 15.85.

The projected lower bound is: 14.57.

The projected closing price is: 15.21.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 26 black candles for a net of 5 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 26.5517. This is not an overbought or oversold reading. The last signal was a buy 0 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 50.44. 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 8 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 -78. This is not a topping or bottoming area. The last signal was a buy 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed up 0.060 at 15.190. Volume was 9% below average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
15.090 15.270 15.050 15.190 18,469,636

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

Moving Averages: 10-period 50-period 200-period
Close: 15.48 14.72 13.72
Volatility: 29 28 29
Volume: 23,718,068 18,694,566 20,126,706

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 10.7% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume into USO (mildly bullish). Our trend forecasting oscillators are currently bearish on USO and have had this outlook for the last 0 periods.

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