Thursday, May 27, 2010

Crude Oil, Natural Gas, Gold and Dollar Commentary For Thursday Evening

Crude oil closed sharply higher on Thursday as European Debt fears ease. Today's rally led to a close above the 10 day moving average crossing at 71.96 signaling that a short term low has likely been posted. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 77.22 are needed to confirm that a short term low has been posted. If July extends this month's decline, last July's low crossing at 66.11 is the next downside target. First resistance is today's high crossing at 74.68. Second resistance is the 20 day moving average crossing at 77.22. First support is Tuesday's low crossing at 67.15. Second support is last July's low crossing at 66.11.

Natural gas closed higher on Thursday and above the 10 day moving average crossing at 4.254 confirming that a short term low has been posted. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If July extends this week's rally, this month's high crossing at 4.587 is the next upside target. If July renews the decline off this month's high, this month's low crossing at 3.971 is the next downside target. First resistance is Wednesday's high crossing at 4.315. Second resistance is this month's high crossing at 4.587. First support is Tuesday's low crossing at 4.036. Second support is this month's low crossing at 3.971.

The U.S. Dollar closed lower on Thursday and below the 10 day moving average crossing at 86.44 warning bulls to use caution as a double top might be forming. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are diverging but are bullish signaling that sideways to higher prices are possible near term. If June renews this year's rally, the 87% retracement level of 2009's decline on the weekly continuation chart crossing at 87.79 is the next upside target. Closes below the 20 day moving average crossing at 85.27 are needed to confirm that a short term top has been posted. First resistance is last Wednesday's high crossing at 87.63. Second resistance is weekly resistance crossing at 87.79. First support is last Friday's low crossing at 85.33. Second support is the 20 day moving average crossing at 85.27.

Gold closed lower due to profit taking on Thursday as it consolidates some of this week's rally but remains above the 10 day moving average crossing at 1204.40. The mid range close sets the stage for a steady opening on Friday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If June extends this week's rally, this month's high crossing at 1249.70 is the next upside target. First resistance is today's high crossing at 1218.50. Second resistance is this month's high crossing at 1249.70. First support is last Friday's low crossing at 1166.00. Second support is the reaction low crossing at 1156.20.

Secrets of the 52 Week High Rule

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