Technical Analysis Crude Oil for 7/28/15

Crude touched new trend lows of $47.08 eyes now on the April 1 low of $47.01. A bout of dollar weakness failed to support prices, as another China equity market sell-off dented demand expectations. On the supply side, an uptick in operating oil rigs last week implies gains in U.S. production, while reports that Iraq will produce record volumes this month, should keep pressure on prices for the foreseeable future.

After $47, the next level of target support is seen enar the January lows at $43.52, and then the March lows at $42.03.  Resistance is seen near the 10-day moving average at $49.96.  Momentum remains negative with the MACD (moving average convergence divergence) index which is printing in the red with a downward sloping trajectory. The only caveat to further negative price action is that the RSI is printing a reading of 22, below the oversold trigger level of 30 and could foreshadow a correction.