Technical Analysis Crude Oil for 11/12/15

Crude oil prices moved lower on Wednesday following a stronger than expected build in crude oil inventories as reported by the API on Tuesday evening.  Traders await the EIA data which is scheduled to be released on Thursday following the Veteran’s Day holiday in the U.S. on Wednesday.  The 6.3 million build reported by the API dwarfed expectations of a 1.5 million barrel build.

Prices tested the October lows but were unable to break the 42.69 level.  Resistance is seen near the 10-day moving average at 45.29. Momentum remains negative as the MACD (moving average convergence divergence) index prints in negative territory with a downward sloping trajectory. The RSI moved lower with price action reflecting accelerating negative momentum.