Friday, May 28, 2010

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

Crude oil closed lower due to profit taking on Friday as it consolidated some of Thursday's rally. The low range close sets the stage for a steady to lower opening on Monday. 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 76.51 are needed to confirm that a short term low has been posted. If July renews 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 75.72. Second resistance is the 20 day moving average crossing at 76.51. First support is the 10 day moving average crossing at 71.83. Second support is Tuesday's low crossing at 67.15.

Natural gas closed higher on Friday as it extended Thursday's breakout above the 10 day moving average crossing at 4.247. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned 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 today's high crossing at 4.399. 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 higher due to short covering on Friday and the high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are diverging but are neutral to 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 85.51 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 the 20 day moving average crossing at 85.51. Second support is last Friday's low crossing at 85.33.

Gold closed slightly higher on Friday as it consolidates above the 10 day moving average crossing at 1202.90. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned 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 Thursday'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.

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