WTI Crude Daily Update for October 24, 2016

Crude oil prices were nearly unchanged on Friday after testing support near the weekly lows at 50.  Short term resistance is seen near the 10-day moving average at 50.95.  Despite a larger than expected draw in crude oil inventories reported earlier in the week.  This week’s U.S. rigs count for oil climbed by 11 to 443 rigs. That marks an eighth-straight weekly rise for the oil-rig count.

Momentum appears to be neutral as the MACD (moving average convergence divergence) index prints near the zero index level with a flat trajectory which points to consolidation. This is mimicked by the RSI (relative strength index) which is printing a reading of 56, which is in the middle of the neutral range and reflects consolidation.