Technical Analysis Crude Oil for 8/25/15

Crude oil prices moved lower on Monday breaking through $39 dollar a barrel for the fresh 6-year low.  Prices ended the trading session at $38.22, following Friday’s report from Baker Hughes that showed that 2-new drilling rigs were added in the prior week.  This shows that oil producers are willing to pump out oil even at prices below $40.

The next level of target support on crude oil is seen near $32.35, were resistance is seen near the 10-day moving average at $41.60.  Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a sell signal.  The RSI moved lower with price action but the 19 print is way oversold, which could lead to a short term correction.