Tuesday, June 15, 2010

Crude Oil Stochastics-RSI are Becoming Overbought But Remain Bullish

Crude oil was higher overnight as it extends last week'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 72.73 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 75.42
Second resistance is the 50% retracement level of May's decline crossing at 78.46

Crude oil's pivot point for Tuesday morning is 75.05

First support is the 10 day moving average crossing at 73.71
Second support is the 20 day moving average crossing at 72.73


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