(BNO) United States Brent Oil Fund - Ratings and Ratios

The United States Brent Oil Fund LP (NYSE ARCA:BNO) is a commodity-focused exchange-traded fund (ETF) designed to track the price of Brent crude oil. The fund achieves this by holding futures contracts on Brent crude oil, providing investors with exposure to one of the most widely referenced global oil benchmarks. Brent crude, extracted from the North Sea, serves as a key indicator for international oil prices, influencing energy markets worldwide.

The funds Benchmark Futures Contract is the near-month Brent crude oil futures contract traded on the ICE Futures Europe Exchange. This approach ensures the fund reflects the current market price of Brent crude. However, when the near-month contract is within two weeks of expiration, the fund transitions to the next-month contract to avoid the volatility and risks associated with contract rollover. This rolling strategy is designed to maintain continuity in tracking the underlying oil price.

From a technical perspective, BNO is currently trading below its 20-day, 50-day, and 200-day simple moving averages (SMA), which are 30.57, 30.83, and 30.29, respectively. This indicates bearish momentum in the short to long term. The Average True Range (ATR) of 0.59 suggests relatively low volatility in recent trading sessions. The funds average daily trading volume over the past 20 days is 346,190 shares, with a last price of 29.33. The funds assets under management (AUM) stand at $90.10 million, reflecting moderate scale in the commodities ETF space.

Based on the provided data, the 3-month forecast for BNO is as follows: - Technical Outlook: The fund is likely to face resistance at its 20-day SMA (30.57) and 50-day SMA (30.83). If prices fail to breach these levels, BNO may remain in a downtrend, potentially testing support near its 200-day SMA (30.29). - Fundamental Outlook: Brent crude oil prices are expected to remain sensitive to global demand trends, geopolitical developments, and OPEC+ production policies. If Brent crude stabilizes or rises, BNO could benefit, but downside risks remain if oil prices decline further. - Volatility: The low ATR (0.59) suggests that price movements may remain subdued in the near term, but this could change if geopolitical tensions or supply-demand imbalances escalate. - Volume: Average daily trading volume (346,190 shares) is moderate, which may lead to liquidity challenges during periods of high market volatility. - AUM: The funds AUM of $90.10 million indicates a smaller-sized ETF, which may be more susceptible to market fluctuations compared to larger commodity funds. Overall, BNOs performance over the next three months will heavily depend on Brent crude oil price movements, which are influenced by a combination of macroeconomic factors and market sentiment.