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Technical Analysis Crude Oil for November 26, 2015

By:
David Becker
Published: Nov 26, 2015, 03:57 UTC

Crude oil prices rallied to 42.25 from 41.90 following the EIA inventory data which showed a 961k barrel rise in crude stocks. The street had been

Technical Analysis Crude Oil for November 26, 2015

Crude oil prices rallied to 42.25 from 41.90 following the EIA inventory data which showed a 961k barrel rise in crude stocks. The street had been expecting a 1.0 million barrel increase.  Additional upside was generated when Baker Hughes announced that drilling rigs dropped by 9 rigs in the latest week. Resistance on crude prices are seen near the 20-day moving average at 43.56, while support is seen near 40.  Momentum has turned positive with the MACD (moving average convergence divergence) index generating a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.

According to the EIA, U.S. commercial crude oil inventories increased by 1.0 million barrels from the previous week. Total gasoline inventories increased by 2.5 million barrels last week, and are well above the upper limit of the average range. Distillate fuel inventories increased by 1.0 million barrels last week and are in the upper half of the average range for this time of year.

Technical Analysis Crude Oil for November 26, 2015
Technical Analysis Crude Oil for November 26, 2015

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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