Wednesday, June 23, 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 overbought and are turning neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 75.85 are needed to confirm that a short term top has been posted. If August extends the rally off May's low, the 62% retracement level of May's decline crossing at 82.67 is the next upside target.

First resistance is Monday's high crossing at 79.94
Second resistance is the 62% retracement level of May's decline crossing at 82.67

Wednesday's pivot point for crude oil is 78.03

First support is the overnight low crossing at 77.04
Second support is the 20 day moving average crossing at 75.85

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

Natural gas was slightly higher due to light short covering overnight as it consolidates some of this week's decline but remains below the 10 day moving average crossing at 4.915. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

Closes below the 20 day moving average crossing at 4.726 would confirm that a short term top has been posted. If July renews this month's rally, the 62% retracement level of the November-May decline crossing at 5.429 is the next upside target.

First resistance is last Wednesday's high crossing at 5.196
Second resistance is the 62% retracement level of the November-May decline crossing at 5.429

Wednesday's pivot point for natural gas is 4.778

First support is the 20 day moving average crossing at 4.726
Second support is Tuesday's low crossing at 4.756

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


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