Technical Analysis Crude Oil for 8/5/15

Crude prices recovered briefly over the $46.00 mark, after diving to new four-month lows of $45.08 on Monday. U.S. and OPEC production remains at or near record highs, and with the demand side of the equation questionable due to general growth concerns, further crude price losses would appear to be in the cards. The March 18 base of $42.03 remains the next major downside target. 

Tuesday’s API report held prices remain buoyed.  According to the American Petroleum Institutecrude oil inventories declined by 2.4 million barrels last week, more than expected. Prices remain in a downtrend and continue to hug the Bollinger band low (2-standard deviations below the 20-day moving average.  Momentum seems to have flattened with the MACD (moving average convergence divergence) index printing near zero.