Technical Analysis Crude Oil for 11/5/15

Crude prices moved lower following a larger than expected build in crude oil inventories.  The stronger dollar also played a role in the drop in prices.  According to the EIA, U.S. commercial crude oil inventories increased by 2.8 million barrels from the previous week. Gasoline inventories decreased by 3.3 million barrels last week, but are above the upper limit of the average range. Distillate fuel inventories decreased by 1.3 million barrels last week but are in the middle of the average range for this time of year.

Prices snapped back down to the 5-day moving average at 46.59, after testing Tuesday’s highs at 48. 35. Support is an upward sloping trend line that comes in near 43.50. Momentum remains positive after the MACD generated a buy signal on Monday.