Technical Analysis of Crude Oil for July 4, 2016 – Inventory Report Wednesday

Crude is lower on Friday, trading to 48.27, levels last seen Tuesday, after topping at 50.00 on Wednesday. Soft China PMI data weighed some on prices, while general global growth concerns keep the demand picture cloudy. Profit taking ahead of the U.S. long weekend is expected to keep upside contained through the session.
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Resistance is seen near the 10-day moving average at 48.73, and then the June highs at 51.65.  Support is seen near the June lows near 45 per barrel.  Momentum is negative with the MACD (moving average convergence divergence) index printing in the red with a flat trajectory. Earlier in the week, prices popped following a larger than expected 4.1-million-barrel draw reported by the Department of Energy.  Demand remains robust, but supply continues to keep pace with implied demand.