Technical Analysis Crude Oil for December 15, 2015

Crude oil prices opened lower on the trading session pushed down by warmer than expected weather for the next 2-weeks.  Heating oil prices continued to move lower placing downward pressure on crude oil.  Later in the trading session, prices rebounded from a 7-year low at 34.53, and moved up on the day closing near 36.20.  Resistance on oil prices is seen near the 10-day moving average at 38.35, while support is seen near Monday’s low.

Momentum on crude oil prices remains negative with the MACD (moving average convergence divergence) index printing in the red with a downward sloping trajectory that points to lower prices. The RSI (relative strength index) has now rebounded to print at 30, which is just above the oversold trigger level of 30, and coming from an oversold condition which points to higher prices.  Levels below 30 are considered oversold.