Wednesday, September 15, 2010

Crude Oil Bulls Struggle to Maintain Their Advantage, Here's Wednesdays Closing Numbers

The S&P 500 index closed higher on Wednesday as it extended the rally off August's low. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional gains are possible near term. If December extends the aforementioned rally, June's high crossing at 1122.90 is the next upside target. Closes below the 20 day moving average crossing at 1077.12 would confirm that a short term top has been posted. First resistance is Tuesday's high crossing at 1122.30. Second resistance is June's high crossing at 1122.90. First support is the 10 day moving average crossing at 1099.20. Second support is the 20 day moving average crossing at 1077.12.

Crude oil closed lower due to profit taking on Wednesday as it consolidates some of the rally off August's low. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If October extends the rally off August's low, the 62% retracement level of the August decline crossing at 78.58 is the next upside target. Closes below the 20 day moving average crossing at 74.47 would temper the near term friendly outlook. First resistance is Monday's high crossing at 78.04. Second resistance is the 62% retracement level of the August decline crossing at 78.58. First support the 20 day moving average crossing at 74.47. Second support is August's low crossing at 70.76.

Natural gas closed higher on Wednesday as it extended Tuesday's breakout above the 20 day moving average. The mid-range lose sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If October extends this week's rally, the 25% retracement level of the June-August decline crossing at 4.102 is the next upside target. Closes below the 10 day moving average crossing at 3.866 would temper the near term friendly outlook. First resistance is today's high crossing at 4.060. Second resistance is the 25% retracement level of the June-August decline crossing at 4.102. First support is the 10 day moving average crossing at 3.866. Second support is August's low crossing at 3.697.

The U.S. Dollar closed higher due to short covering on Wednesday as it consolidated some of this week's decline. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. If December extends the decline off August's high, August's low crossing at 80.75 is the next downside target. Closes above the 20 day moving average crossing at 82.94 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 82.51. Second resistance is the 20 day moving average crossing at 82.94. First support is Tuesday's low crossing at 81.24. Second support is August's low crossing at 80.75.

Gold closed lower due to profit taking on Wednesday as it consolidated some of Tuesday's rally. Stochastics and the RSI are overbought, diverging but are turning bullish again signaling that sideways to higher prices is possible near term. If December extends the rally off July's low, upside targets will now be hard to project following yesterday's rally to a new contract high. Closes below the reaction low crossing at 1237.90 would confirm that a double top with June's high has been posted. First resistance is Tuesday's high crossing at 1276.50. First support is the 20 day moving average crossing at 1245.90. Second support is the reaction low crossing at 1237.90.

Hottest Investment Plays in North America: Oil and Gas Bulletin

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