Wednesday, June 16, 2010

Crude Oil and Natural Gas Market Commentary For Wednesday Morning

Crude oil was lower due to profit taking overnight as it consolidates some of this month's rally. Stochastics and the RSI are becoming overbought but remain bullish signaling that additional short term gains are possible.

If July extends the rally off May's low, the 50% retracement level of May's decline crossing at 78.46 is the next upside target. Closes below the 20 day moving average crossing at 72.98 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 77.19
Second resistance is the 50% retracement level of May's decline crossing at 78.46

Crude oil's pivot point for Wednesday is 76.24

First support is the 10 day moving average crossing at 74.19
Second support is the 20 day moving average crossing at 72.98

Just click here for your FREE trend analysis of crude oil ETF USO

Natural gas was slightly lower due to profit taking overnight as it consolidates some of the rally off May's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If July extends this week's rally, the 62% retracement level of the November-May decline crossing at 5.429 is the next upside target. Closes below the 20 day moving average crossing at 4.544 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 5.196
Second resistance is the 62% retracement level of the November-May decline crossing at 5.429

Naturual gas pivot point for Wednesday is 5.136

First support is the 10 day moving average crossing at 4.868
Second support is the 20 day moving average crossing at 4.544

Just click here for your FREE trend analysis of natural gas ETF UNG


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