There is probably not a single investor that isn’t aware of what is going on with the price of oil recently and the factors of oversea turmoil that is driving the costs higher. Conflict in Egypt, then Libya and now mumblings about what could happen with Saudi Arabia is perpetuating a cycle that has caused wholesale oil prices to surge more than 20% in the last month.
One Company seeing sales revenues climb is Texas-based United States Oil and Gas Corp. (Pink Sheets:USOG).
USO&G is an oil and gas products, services and technology company that markets and distributes refined oil and gas, including diesel, gasoline, propane, high octane racing fuels and lubricants, to wholesale and retail customers in the United States.
The Company issued news today reiterating that their strong business strategies are not only rendering it immune to damages from the rise in oil costs, but, conversely, the Company saw a rise in sales revenue in February. Its North Dakota subsidiary also saw its propane sales outperform the hike in propane wholesale costs as well.
From a technical standpoint, the USOG chart finds itself in a very long symmetrical triangle pattern that began more than five months ago. As happens on many occasions when a triangle drags out for a long period of time, a tight trading channel forms and that is exactly what is going on with USOG as it is stuck in a range between $0.0021 and $0.0028.
A break from this channel may be in the making, though, as volume is pouring in today and the share price rose to touch $0.003 in early morning trading before pulling back to $0.0026.
A move upward that holds $0.003 would be quite substantial for the USOG chart as it not only breaks the top of the short channel, but also the long-term triangle as well as moving above both the 50 and 200 day simple moving averages; all very bullish in the overall picture of the chart.
Other classic and widely-used indicators such as the Moving Average Convergence/Divergence (MACD) and the Relative Strength Index (RSI) appear to be turning bullish as well if the stock price can hold the trend shift from this morning. The MACD is trending very close to zero, often referred to as "the money line," because of the tendency to see a climb in share price when that MACD pushes above it from the underneath side.
The RSI’s are supporting possible upward movement as both the shorter and longer term RSI’s, RSI(7) and RSI(21), are registering readings greater than 50 and moving upward.
As the moving averages continue to converge together, the stock price channel may be becoming exhausted and the candles could be warming up for a larger move. On any pullback, the support level at $0.0021 must hold or the likelihood of the value of a share testing $0.0018 is probable, but for now, technical traders will have their focus on a break above the 200-day moving average and a close that finishes a day on top of the channel; above $0.0028 to break some long-standing markers that are establishing themselves as stubborn resistance.
As always, this stock chart analysis is merely AllPennyStocks.com’s assessment and should not be construed as financial advice. We always encourage investors to do their own due diligence in every company and consult with a licensed financial advisor prior to making any trades. With business apparently moving along smoothly for United States Oil and Gas, traders of all types just may see USOG hitting their watchlists in the near future as the technical and fundamentals seem to be heading in the right direction.
