United States Oil (USO) investors warming to the idea of longer-term investment
Higher and more stable oil prices, corporate restructurings, and investors warming to the idea of longer-term investment sent the U.S. oil and gas deals value to a near-record US$122.8 billion in the third quarter of 2018, the highest deal value since a record high Q3 2014, PwC said in its quarterly deals insights report on Thursday.
The record high third quarter of 2014 saw a total of US$125.7 billion worth of deals struck.
While the volume of the deals was slightly higher quarter-on-quarter and within the historic average trends, the average deal value hit record highs in Q3, PwC said, noting that 82 percent of the deal value was driven by mega deals. A large part of those mega deals were affiliate transactions, which continued to be led by midstream companies restructuring the so-called master limited partnerships (MLP).
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 14.90.
The projected lower bound is: 13.55.
The projected closing price is: 14.22.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 23 white candles and 24 black candles for a net of 1 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 17.7762. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 3 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 37.41. 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 15 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 -105.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 11 period(s) ago.
Rex Takasugi – TD Profile
UNTD ST OIL FUND closed up 0.160 at 14.210. Volume was 26% below average (neutral) and Bollinger Bands were 56% wider than normal.
Open High Low Close Volume___
14.180 14.330 14.160 14.210 15,381,020
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 14.66 14.78 13.79
Volatility: 35 29 30
Volume: 25,027,624 18,941,684 20,541,752
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 3.0% above its 200-period moving average and is in an downward 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 bearish on USO and have had this outlook for the last 7 periods.