Technical Analysis Crude oil For 8/24/15

Crude oil prices broke through $40 dollars are barrel on Friday, following a report from Baker Hughes which showed that drilling rigs increased this past week, despite declining prices.  According to the oil service giant, oil drilling rigs in the United States increased by 2, notching up an increase in production rigs for the 5^th consecutive week.

Crude oil prices moved lower and are now poised to test target lows last seen in 2008 at $32.35.   Demand remains strong, with gasoline product supplied increasing by 6.5% year over year according to the latest EIA report.  Resistance is seen near the 10-day moving average at 42.28.  Momentum is currently flat, but could accelerate if prices trend lower.