Technical Analysis Crude Oil 8/11/15

Crude oil prices dropped following China’s currency devaluation, making dollar priced crude more expensive for the world’s largest oil consumer. Futures prices fell back to $42.69 lows, after peaking at one-week highs of $45.33 in London. After rallying 10 cents to $1.7107 highs since Monday, RBOB gasoline futures have retreated to $1.68/gallon, though average U.S. retail prices are down 6 cents over the past week, to $2.58/gallon.

Crude prices are poised to test the March lows at $42.03 and then the next level of target support will be the 2008 lows at $32.35.  Resistance is seen the 20-day moving average near $47.19.  Momentum remains negative with the MACD (moving average convergence divergence) index printing in the red, while the RSI (relative strength index) prints a 26 reading below the oversold trigger level of 30.