Tuesday, December 21, 2010

Crude Oil Moving Higher Going Into The Year End, What's New!

As usual oil prices are ending the year with a bullish tone. Not pushing through to new highs, but hovering around the high end of the range established in 2010. But as our calls for Tuesday's trading will show, signals are neutral to bearish telling us traders are trying to put a top in here as we go into the end of the year. Looks like natural gas is going to take in the limelight as we head into 2011 with reminders of the good old take over days in the oil and gas industry. Carl Icahn is seeing to that [check out Dian L. Chu's latest article] and something tells me T. Boone is right around the corner. Ah yes, the good old days. Sometimes you can only dream of being physic and getting ahead of the take over trades. For now here is your trading numbers for Tuesday morning......

Crude oil was mostly steady overnight while extending this month's trading range. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 87.73 are needed to confirm that a short term top has been posted. If February renews the rally off November's low, May's high crossing at 93.87 is the next upside target. First resistance is the reaction high crossing at 91.17. Second resistance is May's high crossing at 93.87. First support is the 20 day moving average crossing at 87.73. Second support is last Wednesday's low crossing at 87.43. Crude oil pivot point for Tuesday morning is 88.89.

Natural gas was lower overnight as it consolidates some of Monday's rally. Stochastics and the RSI are oversold and are turning bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 4.317 are needed to confirm that a short term low has been posted. If January extends this month's decline, November's low crossing at 3.853 is the next downside target. First resistance is the 20 day moving average crossing at 4.317. Second resistance is this month's high crossing at 4.637. First support is last Friday's low crossing at 3.951. Second support is November's low crossing at 3.853. Natural gas pivot point for Tuesday morning is 4.167.

Gold was slightly higher due to short covering overnight as it consolidates some of last week's decline. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. If March extends this month's decline, the reaction low crossing at 1352.00 is the next downside target. Closes above the 20 day moving average crossing at 1387.60 would confirm that a short term top has been posted. First resistance is the 20 day moving average crossing at 1387.60. Second resistance is the reaction high crossing at 1408.90. First support is last Thursday's low crossing at 1361.60. Second support is the reaction low crossing at 1352.00. Gold pivot point for Tuesday morning is 1383.90.


Gold, Crude Oil & Index ETF Trading Analysis

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