Crude Oil Continues Lower as World Markets Rebound on Dubai Bailout

Crude oil was lower overnight as it extends this month's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If January extends the decline off October's high, the 87% retracement level of this fall's rally crossing at 68.16 is the next downside target. Closes above the 20 day moving average crossing at 75.67 are needed to confirm that a short term low has been posted.

Monday's pivot point, our line in the sand is 70.18

First resistance is the 10 day moving average crossing at 73.37
Second resistance is the 20 day moving average crossing at 75.67

First support is the overnight low crossing at 68.59
Second support is the 87% retracement level of this fall's rally crossing at 68.16

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Natural gas was higher overnight as it extends last week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If January extends last week's rally, the 62% retracement level of the October-December decline crossing at 5.565 is the next upside target.

Closes below the 20 day moving average crossing at 4.896 would temper the near term bullish outlook in the market.

Natural gas pivot for Monday is 5.22

First resistance is last Friday's high crossing at 5.375
Second resistance is the 62% retracement level of the October-December decline crossing at 5.565

First support is the 20 day moving average crossing at 4.896
Second support is this month's low crossing at 4.432

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The U.S. Dollar was lower due to profit taking overnight as it consolidates some of last Friday's rally. Stochastics and the RSI are overbought and are turning neutral hinting that a short term top might be in or is near.

If March extends last week's rally, November's high crossing at 77.27 is the next upside target. Closes below the 20 day moving average crossing at 75.76 would temper the near term bullish outlook in the market.

First resistance is last Friday's high crossing at 77.12
Second resistance is November's high crossing at 77.27

First support is the 10 day moving average crossing at 76.05
Second support is the 20 day moving average crossing at 75.76


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