Saturday, January 7, 2012

Iran Tension Fails to Push Crude Oil Through Resistance

Crude oil closed lower due to profit taking on Friday as it consolidates some of the rally off December's low. The mid range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends the rally off December's low, the 75% retracement level of the 2011 decline crossing at 104.84 is the next upside target. Closes below the 20 day moving average crossing at 98.86 would signal that a short term top has been posted.

First resistance is Wednesday's high crossing at 103.74. Second resistance is the 75% retracement level of the 2011 decline crossing at 104.84. First support is the 10 day moving average crossing at 100.78. Second support is the 20 day moving average crossing at 98.86.


Precious Metals, Equities and Crude Oil Long Term Outlook

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