Technical Analysis Crude Oil for 8/7/15

Crude oil prices continued to move lower as negative momentum accelerated driving prices toward the March lows.  Eighty year highs in crude oil stocks continues to overwhelm demand, while producers continue to pump out as much crude as feasible.

Crude oil is targeting support at $42.03 and a break of this level will likely lead to a test of the 2008 lows at $32.35.  Resistance is seen near the 10-day moving average at $46.87. Momentum is negative with the MACD printing in the red with a downward sloping trajectory.  The RSI continues to move lower with price action reflecting accelerating negative momentum while printing at 24, below the oversold trigger level of 30 and could foreshadow a correction.