United States Oil (USO) US threatens sanctions if China keeps buying Iranian oil
Treasury Secretary Steven Mnuchin said he is working with China to cut off the minimal flow of Iranian oil exports to the country on “Sunday Morning Futures” with Maria Bartiromo.
“We’ve cut off probably over 95% of the oil revenues, so there’s a very small amount of oil revenues, and you’re right, a component of that, a big component of that is China,” Mnuchin said. “I sat down with the Chinese officials. They flew in a delegation to meet with us and the State Department to talk about this. They’ve cut off all of the state companies from buying oil, and we’re working closely with them to make sure that they cease all additional oil activities.”
Mnuchin said the administration’s goal is to cut off oil revenues going to “bad acts.”
He pointed out that China and even European countries could face U.S. sanctions over Iranian oil.
“China is subject to sanctions just like everybody else,” Mnuchin said. “We actually sanctioned some of their shipping companies that were involved in the oil, and we will continue to pursue sanctions activities against China and anybody else around the world that continues to do business with them.”
“The Europeans are adhering to our primary sanctions…” Mnuchin added, using France as an example. “They would be subject to secondary sanctions, and they understand that.”
Overall, the bias in prices is: Sideways.
The projected upper bound is: 12.97.
The projected lower bound is: 11.88.
The projected closing price is: 12.43.
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 28 white candles and 22 black candles for a net of 6 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 19.7324. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 44.25. 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 3 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 -147.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed down -0.080 at 12.410. Volume was 30% below average (neutral) and Bollinger Bands were 26% narrower than normal.
Open High Low Close Volume___
12.430 12.480 12.335 12.410 16,134,021
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 12.85 12.27 12.06
Volatility: 29 29 39
Volume: 21,153,610 19,535,066 25,380,036
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 2.9% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 50 periods.