Technical Analysis Crude Oil for November 24, 2015

Crude touched 40.42 lows, falling 3% earlier in the session, as dollar strength weighed broadly on the commodity complex. Prices then rebounded following comments from Saudi Arabia, who said it was willing to work with non-OPEC producers to stabilize prices, resulted in a sharp rally to 42.74, which was following by a $1 sell off. A statement from the Saudi official news agency said, “the cabinet stressed the Kingdom’s role in the stability of the oil market, its constant readiness and continuing pursuit to cooperate with all oil producing and exporting countries”

Prices settled near the 10-day moving average, while support is seen near last week’s low at $40. Momentum is negative but the trajectory of the MACD is pointing to a potential buy signal. The RSI (relative strength index) is moving higher with price action reflecting accelerating positive momentum while printing a reading of 42, which is in the middle of the neutral range.