Wednesday, February 8, 2012

Crude Oil Moves Higher on Reports of Shrinking Stockpiles

March crude oil was higher overnight and trading above the 20 day moving average crossing at 99.03. Stochastics and the RSI have turned bullish following Monday's rally signaling that a low has likely been posted. Closes above the reaction high crossing at 101.29 are needed to confirm that a short term low has been posted. If March extends the decline off January's high, December's low crossing at 92.95 is the next downside target. First resistance is the 20 day moving average crossing at 99.03. Second resistance is the reaction high crossing at 101.29. First support is last Thursday's low crossing at 95.44. Second support is December's low crossing at 92.95. Crude oil pivot point for Wednesday morning is 97.79.

March natural gas was lower overnight. Stochastics and the RSI are neutral signaling that sideways to lower prices are possible near term. Closes above the reaction high crossing at 2.844 are needed to confirm that a short term low has been posted. If March renews the multi-year decline, monthly support crossing at 1.960 is the next downside target. First resistance is last Monday's high crossing at 2.844. Second resistance is January's high crossing at 3.153. First support is January's low crossing at 2.289. Second support is monthly support crossing at 1.960. Natural gas pivot point for Wednesday morning is 2.514.

April gold was lower due to profit taking overnight. Stochastics and the RSI are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1701.60 would confirm that a short term top has been posted. If April renews the rally off December's low, the 62% retracement level of the September-December decline crossing at 1772.80 is the next upside target. First resistance is last Friday's high crossing at 1765.90. Second resistance is the 62% retracement level of the September-December decline crossing at 1772.80. First support is Monday's low crossing at 1712.60. Second support is the 20 day moving average crossing at 1701.60. Gold pivot point for Wednesday morning trading is 1737.90.

10:30 AM ET. Feb 3 EIA Weekly Natural Gas Storage Report

Total Working Gas in Storage (previous 2966B)

Total Working Gas in Storage (Net Change) (previous -132B)

Was Friday’s Price Action in Gold Signaling a Top in the S&P 500?

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