WTI Crude Daily Update for August 31, 2016

WTI crude oil prices fell to session lows of 46.22 from near 47.30 after the much better U.S. confidence data. Brent prices fell in tandem. The dollar strengthened, putting pressure on prices, with the USD advancing to levels last seen on August 10. Traders await inventory data which will be released after the closing bell on Tuesday by the American Petroleum Institute.

Prices tested resistance near the 10-day moving average at 47.48, and are now poised to test support levels near 46. Momentum is poised to turn negative as the MACD is close to generating a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.  The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum. The current print of 52, is in the middle of the neutral range.