Thursday, December 23, 2010

Smooth Sailing For Crude Oil Bulls or Bearish Set Up?

Crude oil bulls are enjoying a gift from old Saint Nick. After hitting 90.79 in the overnight session the bulls are now being given a chance to break out of this month's trading range and have visions of $100 oil glistening with holiday cheer! But smart bears that know how to play these set ups with tight stops are peeking around the Christmas tree with such holiday glee. If the bears are regifted with trading below 89.06 [minor support] the trend will flip back to the downside to extend the consolidation from 90.76.

With so many commercial traders taking next week off you have to ask yourself "are you willing to sit on these oil long positions going into the holiday"? Enjoy your Christmas gifts and at the very least take part of your profits. Here's your trading numbers for Thursday morning.....

Crude oil was higher overnight while extending this month's trading range. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If February renews the rally off November's low, May's high crossing at 93.87 is the next upside target. Closes below last Wednesday's low crossing at 87.43 are needed to confirm that a short term top has been posted. First resistance is this month's 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 88.49. Second support is last Wednesday's low crossing at 87.43. Crude oil pivot point for Thursday morning is 90.38.

Natural gas was lower overnight as it extends this week's trading range. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 4.280 are needed to confirm that a short term low has been posted. If January renews 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 4.280. 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 Thursday morning is 4.102.

Gold was lower overnight as it consolidates some of this week's gains. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 1408.90 are needed to confirm that a short term top has been posted. If March renews the decline off this month's high, the reaction low crossing at 1352.00 is the next downside target. First resistance is Tuesday's high crossing at 1393.00. 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 Thursday morning is 1387.50.


How To Spot Winning Futures....Watch Video NOW

Share

No comments:

ShareThis