Friday, September 3, 2010

Crude Oil Trader Market Summary For Friday Evening

The S&P 500 index gapped up and closed higher on Friday as it extended this week's rally. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signaling that additional gains are possible near term. If September extends this week's rally, August's high crossing at 1127.50 is the next upside target. Closes below the 10 day moving average crossing at 1059.54 would confirm that a short term top has been posted. First resistance is today's high crossing at 1104.30. Second resistance is August's high crossing at 1127.50. First support is the 20 day moving average crossing at 1071.32. Second support is the 10 day moving average crossing at 1059.54.

Crude oil closed lower on Friday due to profit taking but remains above the 10 day moving average crossing at 73.56. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 75.24 are needed to confirm that a short term low has been posted. If October renews the decline off August's high, May's low crossing at 70.35 is the next downside target. First resistance is the 20 day moving average crossing at 75.24. Second resistance is last Friday's high crossing at 75.21. First support is last Wednesday's low crossing at 70.76. Second support is May's low crossing at 70.35.

The U.S.Dollar closed lower on Friday as it extends yesterday's breakout below the 20 day moving average crossing at 82.61. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If September extends this week's decline, the reaction low crossing at 81.99 is the next downside target. If September renews August's rally, the reaction high crossing at 84.73 is the next upside target. First resistance is the 10 day moving average crossing at 82.94. Second resistance is last Tuesday's high crossing at 83.64. First support is today's low crossing at 82.05. Second support is the reaction low crossing at 81.99.

Natural gas closed higher on Friday and above the 10 day moving average crossing at 3.864 signaling that a short term low might be in or is near. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short covering rebound is possible near term. Closes above the 20 day moving average crossing at 4.071 would confirm that a short term low has been posted. If October extends this year's decline, weekly support crossing at 3.225 is the next downside target. First resistance is today's high crossing at 3.946. Second resistance is the 20 day moving average crossing at 4.071. First support is last Friday's low crossing at 3.697. Second support is weekly support crossing at 3.225.

Gold closed lower due to profit taking on Friday as it consolidates below the 87% retracement level of the June-July decline crossing at 1253.30. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near term. If August extends the rally off July's low, June's high crossing at 1267.10 is the next upside target. Closes below the 20 day moving average crossing at 1228.80 are needed to confirm that a short term top has been posted. First resistance is Wednesday's high crossing at 1255.30. Second resistance is June's high crossing at 1267.10. First support is the 10 day moving average crossing at 1240.60. Second support is the 20 day moving average crossing at 1228.80.

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