Wednesday, July 14, 2010

Crude Oil and Natural Gas Technical Outlook Wednesday Morning

Crude oil was lower due to profit taking overnight as it consolidates above the 20 day moving average crossing at 76.23. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If August extends this month's rally, the reaction high crossing at 79.38 is the next upside target. Closes below Tuesday's low crossing at 74.25 would temper the near term friendly outlook.

First resistance is Tuesday's high crossing at 77.37
Second resistance is the reaction high crossing at 79.38

Crude oil pivot point for Wednesday morning is 76.26

First support is Tuesday's low crossing at 74.25
Second support is the reaction low crossing at 71.09

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Natural gas was lower overnight as it extends last week's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If August extends the decline off June's high, the reaction low crossing at 4.285 is the next downside target. Closes above the 20 day moving average crossing at 4.706 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 4.529
Second resistance is the 20 day moving average crossing at 4.706

Natural gas pivot point for Wednesday morning is 4.392

First support is Tuesday's low crossing at 4.334
Second support is the reaction low crossing at 4.285

Double Tops and Pivot Points Explained

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