Technical Analysis of Crude Oil for May 31, 2016 – Inventory Report Wednesday

Crude oil prices were nearly unchanged on Monday, as holiday’s in the U.S. and the U.K. reduced volume.  Friday’s continued decline in oil rigs according to a report from Oil Service Giant Baker Hughes, did little to buoy prices.  Support is seen near the 10-day moving average at 48.87, while resistance is seen near last week’s highs at 50.20.

Momentum on crude oil prices is flat as the MACD (moving average convergence divergence) index prints near the zero index level, but also recently generated a sell signal.  This reflects a market that is consolidating. The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum, while printing a reading of 67 which is on the upper end of the neutral range just below the overbought trigger level of 70.