Thursday, April 19, 2012

Crude Oil Remains Locked in March's Down Trending Channel

Crude oil [May contract] closed lower on Thursday, as it remains locked in March's down trending channel. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bullish signaling that a low might be in or is near. 


Closes above the 20 day moving average crossing at 103.83 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 the 20 day moving average crossing near 103.83. Second resistance is the reaction high crossing at 105.49. First support is last Tuesday'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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