United States Oil (USO) U.S. benchmark ending below $70 a barrel

United States Oil (USO) U.S. benchmark ending below $70 a barrel

United States Oil (USO) U.S. benchmark ending below $70 a barrel

Oil futures dropped Wednesday, with the U.S. benchmark ending below $70 a barrel for the first time in more than three weeks, as U.S. government data revealed a sizable climb in domestic crude supplies for a fourth week in a row.

November West Texas Intermediate crude on the New York Mercantile Exchange CLX8, -0.01% fell $2.17, or 3%, to settle at $69.75 a barrel. That was the lowest finish for a front-month contract since Sept. 17, according to FactSet data. December Brent crude LCOZ8, -0.04% the global benchmark, declined $1.36, or 1.7%, to $80.05 a barrel on ICE Futures Europe after an intraday low of $79.17. The settlement was the lowest since Sept. 21.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 15.49.

The projected lower bound is: 14.17.

The projected closing price is: 14.83.

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 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 27.1255. This is not an overbought or oversold reading. The last signal was a buy 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 43.42. 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 9 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 -130.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 sell 5 period(s) ago.

Rex Takasugi – TD Profile

UNTD ST OIL FUND closed down -0.370 at 14.820. Volume was 54% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
15.050 15.059 14.690 14.820 31,607,612

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

Moving Averages: 10-period 50-period 200-period
Close: 15.35 14.72 13.74
Volatility: 29 28 30
Volume: 24,256,412 19,059,142 20,224,842

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 7.9% above its 200-period moving average and is in an downward trend. Volatility is 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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