Oil prices fell on Tuesday, after President Joe Biden announced the release of 50 million barrels of oil from strategic petroleum reserves (SPR) stockpile.
WTI futures contracts for January delivery fell $1.38 lower from Monday night's close at $75.38 a barrel immediately following news of the SPR release. Brent crude contracts for January delivery fell $1.02 to a two-month low of $78.74 per barrel.
Last week, U.S. oil prices fell to a six-week low, following reports that Biden had asked other major world leaders to authorize the release of their own reserves to increase global oil supplies and therefore offset the price impact from OPEC’s oil production cuts.
The SPR, established after the oil crisis of the 1970s, consists of oil is stored in underground salt caverns in Texas and Louisiana. This is an emergency reserve, and the caverns currently hold more than 600 million barrels of oil.
The Moving Average Convergence Divergence (MACD) for BNO turned positive on May 18, 2023. Looking at past instances where BNO's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BNO's RSI Oscillator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 24, 2023. You may want to consider a long position or call options on BNO as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BNO advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
BNO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where BNO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
BNO moved below its 50-day moving average on April 25, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BNO crossed bearishly below the 50-day moving average on May 02, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BNO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BNO entered a downward trend on May 15, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.