WTI Crude daily update for July 25, 2016

WTI crude oil prices moved lower on Friday in the wake of the larger than expected increase in active drilling rigs. Brent crude oil followed suit. Crude printed two-month lows of 43.77 in the aftermath of the Baker-Hughes rig count data, which revealed an increase of 14 operating rigs to 371. The rebound in functioning rigs has been a source of concern for oil bulls, as it indicates further domestic supply coming back on line.
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Resistance on crude oil prices is seen near the 10-day moving average at 45.29, while support is seen near the June lows at 42.86. Momentum has turned negative again as the MACD (moving average convergence divergence) index generated a sell signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.  The RSI broke down below support reflecting accelerating negative momentum, which should lead to lower prices.