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Technical Analysis Crude Oil for 8/31/15

By:
David Becker
Published: Aug 29, 2015, 05:09 UTC

Crude oil prices rallied for a second consecutive day on Friday, boosting the entire petroleum complex as shorts headed for the exits and bulls prepared

Technical Analysis Crude Oil for 8/31/15

Crude oil prices rallied for a second consecutive day on Friday, boosting the entire petroleum complex as shorts headed for the exits and bulls prepared for a squeeze.  The increase comes despite an increase in the Baker Hughes rig count which increased for the 6th consecutive week.  Solid increases in consumer spending and income along with the revival of a conflict between the Saudis and Yemen have helped boost prices.

Crude oil broke out on Thursday and continue to rally on Friday.  Prices closed above a downward sloping trend line that coincides with the 20-day moving average.  The next level of target resistance is seen near $49.  Support is seen near the recent lows at $38.22. Momentum has turned positive with the MACD (moving average convergence divergence) generating a buy signal.

Technical Analysis Crude Oil for 8/31/15
Technical Analysis Crude Oil for 8/31/15

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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