USO ends the day indecisive
United States Oil Fund (USO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USO ended the month 3.6% higher at 29.07 after gaining $0.14 (0.48%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (USO as at Jul 31, 2020):
Friday's trading range has been $0.57 (1.96%), that's slightly below the last trading month's daily average range of $0.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USO.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Southern Doji showed up on April 29th, USO gained 6.22% on the following trading day.
Prices are trading close to the key technical resistance level at 29.19 (R1).
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 29.75 where further buy stops could get triggered. As prices are trading close to July's high at 30.22, upside momentum might accelerate should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for USO. Out of 64 times, USO closed higher 62.50% of the time on the next trading day after the market condition occurred.