Technical Analysis Crude Oil for November 30, 2015

Crude oil prices moved lower on Friday after failing to breach resistance near the 20-day moving average at 43.15.  Friday’s downdraft in Chinese stocks added to the slow growth story that has been eroding oil prices.  The dollar also continued to gain traction, which generates additional headwinds for commodities in general. The catalyst behind the sell-off in China was news that a number of brokerages are being investigated for alleged violation of securities regulations.

Support on crude oil prices is seen near the recent lows at 40.  Momentum is positive with the MACD (moving average convergence divergence) index recently generating a buy signal.  The trajectory of the MACD is flat which reflects consolidation.  The relative strength index (RSI) edged lower along with price action reflecting accelerating negative momentum while printing a reading of 42, which is in the middle of the neutral range and also reflects consolidation.