Wednesday, July 28, 2010

Crude Oil Closes Lower on Additional Profit Taking.....Here's Wednesday Evenings Numbers

Crude oil closed lower due to profit taking on Wednesday as it consolidated some of this month's rally. The mid range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 76.42 would temper the near term friendly outlook. If September renews the rally off this month's low, June's high crossing at 80.82 is the next upside target. First resistance is Tuesday's high crossing at 79.69. Second resistance is June's high crossing at 80.82. First support is the 20 day moving average crossing at 76.42. Second support is the reaction low crossing at 74.40.

Natural gas closed higher on Wednesday as it extended last week's rally. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If September extends this week's rally, the reaction high crossing at 4.945 is the next upside target. Closes below the 20 day moving average crossing at 4.563 would temper the near term friendly outlook. First resistance is today's high crossing at 4.863. Second resistance is the reaction high crossing at 4.945. First support is the 10 day moving average crossing at 4.581. Second support is the 20 day moving average crossing at 4.563.

The U.S. Dollar closed lower on Wednesday but remains above the 50% retracement level of the November-June rally crossing at 82.15. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bearish signaling that additional weakness is possible near term. If September extends the decline off June's high, the 62% retracement level of the November-June rally crossing at 80.47 is the next downside target. Closes above the 20 day moving average crossing at 83.49 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 82.69. Second resistance is the 20 day moving average crossing at 83.49. First support is Tuesday's low crossing at 81.97. Second support is the 62% retracement level of the November-June rally crossing at 80.47.

Gold closed higher due to short covering on Wednesday as it rebounds off the 50% retracement level of this year's rally crossing at 1158.30. Stochastics and the RSI are bearish hinting that additional weakness is possible near term. If August extends the decline off June's high, the 62% retracement level of the aforementioned decline crossing at 1132.70 is the next downside target. Closes above the 20 day moving average crossing at 1196.40 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 1184.90. Second resistance is the 20 day moving average crossing at 1196.40. First support is today's low crossing at 1155.60. Second support is the 62% retracement level of the aforementioned decline crossing at 1132.70.

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