Technical Analysis Crude Oil for 7/30/15
Crude oil prices moved higher on Wednesday following a larger than expected draw in crude oil inventories which pushed prices up to resistance levels. The Fed kept rates unchanged, but might be ready to pull the trigger in September which could buoy the dollar and generate additional headwinds for petroleum prices.
According to the EIA U.S. commercial crude oil inventories decreased by 4.2 million barrels from the previous week. Gasoline inventories decreased by 0.4 million barrels last week, and distillate fuel inventories increased by 2.6 million barrels last week. Total commercial petroleum inventories increased by 0.1 million barrels last week.
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Prices hit resistance at the 10-day moving average at $49.22 but was unable to close above it. Support is seen near the weekly low at 446.68. Momentum is negative but the tractor of the MACD is flattening. The RSI has moved out of oversold territory and pointing to accelerating positive momentum.