Technical Analysis Crude Oil for November 19, 2015

Crude oil prices cracked the 40 per barrel level, touching 39.92, a nearly three-month low. Seller came out of the woodwork on the break off 40.60, which had provided good support in afternoon trade on Tuesday.  This came despite a smaller than expected build in crude oil inventories as reported on Wednesday by the Department of Energy.  Support on crude oil prices is seen near the August lows at 37.75.  Resistance is seen near the 10-day moving average at 42.67.  Momentum remains negative with the MACD printing in the red with a downward sloping trajectory.

According to the EIA, U.S. commercial crude oil inventories increased by 0.3 million barrels from the previous week. This compares to the 2 million barrel increase expected by analysists. Gasoline inventories increased by 1.0 million barrels last week, and are well above the upper limit of the average range. Distillate fuel inventories decreased by 0.8 million barrels last week.