Oil prices drop as inventories grow
Oil prices continue to drop with an unexpected gain in U.S. inventories. U.S. crude inventories rose unexpectedly last week, while gasoline and distillate stockpiles built-up more than expected, data from the American Petroleum Institute showed on Tuesday.
Crude stocks rose by 3.5 million barrels in the week to May 31 to 478 million barrels, compared with analysts’ expectations for a decrease of 849,000 barrels. Crude oil prices are now flirting into bear market territory.
OIL in +2.62% Uptrend, growing for three consecutive days on May 24, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where OIL advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where OIL's RSI Oscillator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
OIL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 30, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on OIL as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for OIL turned negative on May 31, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
OIL moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for OIL crossed bearishly below the 50-day moving average on May 03, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 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 OIL 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 OIL 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.
Fundamental Analysis (Ratings)
Industry description
OIL and
Correlation & Price change
A.I.dvisor tells us that OIL and SLV have been poorly correlated (+25% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that OIL and SLV's prices will move in lockstep.
| Ticker / NAME | Correlation To OIL | 1D Price Change % | ||
|---|---|---|---|---|
| OIL | 100% | +3.06% | ||
| SLV - OIL | 25% Poorly correlated | +1.57% | ||
| PHYS - OIL | 18% Poorly correlated | +0.45% | ||
| GLDM - OIL | 16% Poorly correlated | +0.77% | ||
| IAU - OIL | 16% Poorly correlated | +0.78% | ||
| GLD - OIL | 16% Poorly correlated | +0.79% |
