Monday, October 4, 2010

Crude Oil Technical Outlook For Monday Morning Oct. 4th

Crude oil was lower due to profit taking overnight as it consolidates some of last week's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If November extends the rally off last week's low, the 87% retracement level of August's decline crossing at 82.41 is the next upside target. Closes below the 20 day moving average crossing at 76.99 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 81.87
Second resistance is the 87% retracement level of August's decline crossing at 82.41

Crude oil pivot point for Monday morning is 81.01

First support is the 20 day moving average crossing at 76.99
Second support is the reaction low crossing at 73.58



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