Technical Analysis Crude Oil for November 20, 2015

Crude oil prices edged lower on Thursday as the weight of excess supplies continued to weigh on prices. Warmer than normal weather continues to cover the northeast, which is the main hub for heating oil demand, reducing heating demand.  The dollar lost some ground against most major currencies giving prices a brief respite.

Prices made a lower high and a lower low on Thursday keeping the downtrend intact. Support on prices is seen near the August lows at 37.75.  Resistance is seen near the 10-day moving average at 42.15.  Momentum remains negative as the MACD (moving average convergence divergence) prints in the red with a downward sloping trajectory which points to lower prices. The relative strength index (RSI) which is a momentum oscillator that measures overbought and oversold levels by examining how far crude has moved over the past 14-days, is printing a reading of 35, which is on the lower end of the neutral range.