Thursday, March 8, 2012

Crude Oil Bulls Struggle to Show They Have The Advantage

Crude oil closed higher due to short covering on Thursday as it consolidated some of Tuesday's decline. The high range close sets the stage for a steady to higher opening on Friday.

Stochastics and the RSI remain bearish signaling that a short term top might be in or is near. Closes below Wednesday's crossing at 104.35 are needed to confirm that a short term top has been posted. If April renews this winter's rally, the 2011 high crossing at 114.09 is the next upside target.

First resistance is last Thursday's high crossing at 110.55. Second resistance is the 2011 high crossing at 114.09. First support is Wednesday's low crossing at 104.35. Second support is the reaction low crossing at 97.73.

Check out our latest Video, Market Analysis and Forecast for the Dollar, Crude Oil, Gold, Silver, and the SP500

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