Technical Analysis Crude Oil for November 20, 2015

Crude oil prices were under pressure for most of the North American trading session as global supplies continue to dwarf demand.  Prices received a boost in the U.S. afternoon following a report from Baker Hughes the oil service giant that showed oil rigs declined in the latest week.  U.S. oil rigs fell by 10, according to Baker Hughes, to total 564, well below last year’s total of 1,574.Last week, the rig count rose by 2, snapping a 10-week declining streak.

Prices edged above the 10-day moving average testing resistance near the early November low at 42.75.  Support is seen near 40 per barrel and then again at the August lows at 37.75.  Momentum is negative but is poised to turn positive as the trajectory of the MACD is moving upward and could generate a buy signal in the near future.  The RSI moved higher with price action reflecting accelerating positive momentum.