Technical Analysis Crude Oil for March 21, 2016

Crude oil prices retreated on Friday after hitting fresh highs for 2016 above 41 per barrel. The two catalyst which helped drive prices higher where the Fed’s forecast change of interest rates which drove the dollar lower and the news that major oil producers with meet in mid-April to discuss an output freeze.  Prices began to decline following a report from Baker Hughes, the oil service giant that showed that oil rig count rose in the latest week. The domestic oil-rig count rose by 1 rig to 387 as of Friday. Meanwhile, the total U.S. rig count fell 4 to 476, which is a record low.

Support on oil prices is seen near the 10-day moving average at 38.08, while resistance is seen near 42.05.  Momentum remains positive with the MACD (moving average convergence divergence) index printing in the black with an upward sloping trajectory which points to higher prices.