Technical Analysis Crude Oil for 8/20/15

Crude oil prices sliced through the recent lows and are now poised to test the 2008 lows following a counter season build in crude oil inventories.  Momentum is negative with the MACD printing in the red with a downward sloping trajectory. The RSI continues to printing in oversold territory at 24, below the oversold trigger level of 30.  Resistance is seen near the 5-day moving average at $41.94.

Inventories showed a counter seasonal build according to the EIA. U.S. commercial crude oil inventories increased by 2.6 million barrels from the previous week. Gasoline inventories decreased by 2.7 million barrels last week, and are in the middle of the average range. Distillate fuel inventories increased by 0.6 million barrels last week but are in the middle of the average range for this time of year.