Technical Analysis Crude Oil for 8/14/15

Crude oil pushed through support levels but appeared to bounce off of the March lows near $42.03, making a fresh 6-year low at $41.79. The dollar has weighed on prices, as it moved higher following the easing of China’s currency devaluations pace, though the recent yuan easing will make dollar priced crude more expensive for the world’s largest oil consumer. Over-supply in global oil markets will continue to keep pressure on prices going forward.

If prices convincingly pass through $42.03, the next level of target support is seen near the 2008 lows at 32.35.  Momentum remains negative with the MACD (moving average convergence divergence) index printing in negative territory with a downward sloping trajectory.