Monday, April 23, 2012

Crude Oil Bounces Back After Two Days of Loses

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Crude oil [May contract] closed higher on Monday ending a two day decline off Wednesday's high but remains locked in March's down trending channel. The low range close sets the stage for a steady to lower opening on Tuesday.

Stochastics and the RSI remain neutral to bullish signaling that a low might be in or is near. Closes above last Tuesday's high crossing at 105.07 are needed to confirm that a short term low has been posted. If May renews the decline off March's high, the 38% retracement level of the October-March rally crossing at 97.84 is the next downside target.

First resistance is last Tuesday's high crossing near 105.07. Second resistance is the reaction high crossing at 105.49. First support is this month's low crossing at 100.68. Second support is the 38% retracement level of the October-March rally crossing at 97.84.

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