Crude Oil Headed Lower On Monday, Higher Prices Still Possible Near Term

Crude oil is set to pull back on Monday as general market sediment has us going lower today. Can crude oil continue a bullish trend as the indexes rollover? Most likely the answer is yes.

The U.S. Dollar is still our best indicator and with the dollar breaking the daily 200 EMA we expect the dollar to go lower. Also, the commercials are holding their smallest short position's in the months, it appears the overall attitude on crude oil remains bullish.

At this point most professional traders will be buying the pullbacks, we'll be doing the same. For day traders watch the weekly pivot of 56.65, very close to our 1st support of 56.94, as traders looking to go long may pile in at this level.

The pivot point for Monday, our line in the sand is 57.85

1st resistance is 59.54
2nd resistance is 60.45
3rd resistance is 62.14

1st support is 56.94
2nd support is 55.25
3rd support is 54.34

The weekly pivot point is 56.65


Today’s Stock Market Club Trading Triangles



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"Exxon Begins Drilling at Point Thomson"

Exxon Mobil says it has begun drilling at Alaska's Point Thomson oil and gas field.
Patrick McGinn, a company spokesman, says drilling operations were launched Friday.

In February, Exxon returned eight of its Point Thomson leases that were part of 13 added to the field in 2002. Exxon had promised to drill wells and begin producing oil within four years, but no drilling occurred.

The state has been fighting with the Irving, Texas based oil giant and other lease holders over the lack of progress there.

Alaska officials have tried to cancel the leases, but in January it did allow Exxon to drill on two leases after the company said it would start production within five years.



How do you feel about big oil being pressured to use their leases or risk losing them? Feel free to leave a comment, our readers want to know what you think!


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USO and Crude Oil On The Move

We don’t often produce videos on ETFs, but we find USO to be very interesting right now. This ETF, United States Oil, closely tracks the price of crude oil in New York.

This market appears to have completed a formation that could have great profit opportunities in the near term.

In our new video, we explain in detail a strategy that we are using to approach this market. As always, our videos are registration free and come with our compliments.

Please feel free to comment on our blog about your experiences and thoughts on USO and the crude oil market.



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Crude Oil Closes Higher On Improved Demand Outlook, Better Than Expected Employment Numbers

June crude oil closed higher on Friday as it extends the rally off April's low. The high range close sets the stage for a steady to higher 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 June extends the rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 52.20 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 58.67.
Second resistance is January's high crossing at 59.66.

First support is the 10 day moving average crossing at 53.50.
Second support is the 20 day moving average crossing at 52.20.

Today’s Stock Market Club Trading Triangles

The June Dollar closed sharply lower on Friday and below March's low crossing at 83.14. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term.

If June extends the decline, the 87% retracement level of the December-March rally crossing at 81.49 is the next downside target. Multiple closes above the 20 day moving average crossing at 85.13 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 84.47.
Second resistance is the 20 day moving average crossing at 85.13.

First support is today's low crossing at 82.76.
Second support is the 87% retracement level crossing at 81.49.

Today’s Stock Market Club Trading Triangles

The June S&P 500 index closed higher on Friday as it extends this spring's rally. The high range close sets the stage for a steady to higher 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 June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 869.08 are needed to confirm that a short term top has been posted.

First resistance is Thursday's high crossing at 929.00.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 887.79.
Second support is the 20 day moving average crossing at 869.08.


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Oil Rises On Positive Unemployment Numbers, Venezuela Seizes 60 Oilfield Service Company Assets

"Oil Rises to Highest Since November as U.S. Job Losses Slow"
Crude oil rose to the highest level since November after a report showed that the U.S. cut fewer jobs than forecast in April, a signal that the worst of the recession has passed and fuel demand may rebound. Oil prices gained 10 percent this week as reports on U.S. home sales and manufacturing in China boosted optimism about the economy and after U.S. crude oil supplies climbed less than forecast. Payrolls fell by 539,000, after a 699,000 loss in March.....Complete Story

"Crude Settles at Fresh Six Month High"
Crude oil futures prices jumped Friday to a fresh six-month high after the latest U.S. employment data showed the economic crisis may be bottoming out. Nymex light sweet crude oil for June delivery settled up $1.92 a barrel, or 3.4%, at $58.63, the highest level since Nov. 11. Crude futures gained in seven of the past eight sessions, rising 17.4%, or $8.71, since April 28. ICE June North Sea Brent crude settled up 2.96%, or $1.67, at $58.14 a barrel.....Complete Story

"Venezuela Seizes 60 Oilfield Service Company Assets"
Venezuelan President Hugo Chavez seized assets from 60 oilfield services companies including Oklahoma-based Williams Cos., using a law the national assembly passed yesterday. Employees at state oil company Petroleos de Venezuela SA worked through the night to take over operations from companies that provided services such as water and gas compression and maritime support, Chavez said. Venezuela’s benchmark government bonds fell the most in 2 1/2 months. “Today, the private services companies disappear.....Complete Story


Today’s Stock Market Club Trading Triangles

Higher Prices For Crude Oil Possible Near Term

June crude oil was higher overnight as it extends this week's rally above March's high crossing at 56.10. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 52.17 are needed to confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 56.84

First resistance is Thursday's high crossing at 58.57.
Second resistance is January's high crossing at 59.66.

First support is the 10 day moving average crossing at 53.44.
Second support is the 20 day moving average crossing at 52.17.

Today’s Stock Market Club Trading Triangles

The June Dollar was lower overnight as it extends this week's trading range. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off April's high, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.19 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 84.58.
Second resistance is the 20 day moving average crossing at 85.19.

First support is Thursday's low crossing at 83.55.
Second support is March's low crossing at 83.14.

Today’s Stock Market Club Trading Triangles


The June S&P 500 index was higher overnight due to short covering as it consolidates some of Thursday's decline. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 868.82 are needed to confirm that a short term top has been posted.

Friday's pivot point is 911.5

First resistance is Thursday's high crossing at 925.75
Second resistance is January's high crossing at 943.25

First support is the 10 day moving average crossing at 894
Second support is the 20 day moving average crossing at 880

Friday sets up as a possible sideways trading day and we will trade the 906-913 range as a "battle ground" area.

The June S&P 500 Index was up 11.40 points. at 918.40 as of 6:03 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.

Check out our new video "Do You Believe The Stress Test"

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Crude Oil Closes Higher On Thursday, Well Off Session Highs

June crude oil closed higher on Thursday but well off session highs due to some profit taking. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 52.00 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 58.57.
Second resistance is January's high crossing at 59.66.

First support is the 10 day moving average crossing at 52.79.
Second support is the 20 day moving average crossing at 52.00.

Today’s Stock Market Club Trading Triangles

The June Dollar closed higher on Thursday as it extends this week's trading range. The mid range close sets the stage for a steady opening on Friday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, March's low crossing at 83.14 is the next downside target. Multiple closes above the 20 day moving average crossing at 85.29 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 84.67.
Second resistance is the 20 day moving average crossing at 85.29.

First support is today's low crossing at 83.55.
Second support is March's low crossing at 83.14.

Today’s Stock Market Club Trading Triangles

The June S&P 500 index posted a downside reversal on Thursday due to profit taking as it consolidated some of this spring's rally. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 865.19 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 929.00.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 881.39.
Second support is the 20 day moving average crossing at 865.19.


Will the stress test results put crude oil back in rally mode? Let us know, please feel free to leave a comment and let our readers know!

Crude Oil Falls as Equities Decline, Oil Workers Seem To Be Kept On The Job, OPEC Unlikely To Announce New Cuts

"Crude Oil Falls as Equities Decline, Signaling Lower Demand"
Crude oil fell as declining equity markets signaled that the recession in major energy consuming countries will prevent demand from rebounding. Prices retreated from the highest level this year as a drop in telephone and technology companies snuffed out an early stock rally. The Energy Department said yesterday that U.S. crude oil supplies climbed to the highest level since 1990 as fuel consumption tumbled.

“We’re just tracking equities,” said Tim Evans, an energy analyst with Citi Futures Perspective in New York. “The recent demand data are so weak that we could have a remarkable increase in demand.....Complete Story

"Oil Workers Stay Put In a Downturn"
The recent oil boom spurred the largest expansion in offshore drilling since the 1970s. Diamond Offshore Drilling (DO) particularly cashed in on the huge demand for its 45 deepwater oil rigs that it contracts to oil companies such as ExxonMobil (XOM), Chevron (CVX) and Conoco-Phillips (COP). During the past three years, Diamond's average annual growth rate was 41%, and in 2008 it increased profits by 55%,to $1.3 billion. But when the economy took a nosedive and oil prices plummeted last year, drilling activity saw a precipitous drop, too. While Diamond is still growing, the pace has slowed: On Apr. 23 the Houston company announced a 13% revenue increase in the first quarter of 2009. In 2008, revenue had grown by nearly 30% compared to the same period the year before.....Complete Story

Today’s Stock Market Club Trading Triangles

"OPEC Unlikely to Announce New Output Cut in May, Barclays Says"
The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, is unlikely to announce a further output cut at its next meeting as prices “stabilize,” according to Barclays Capital. OPEC will probably keep production targets unchanged as long as crude prices remain around current levels and inventory growth continues to slow, according to Barclays’s head of commodities research, Paul Horsnell. The group meets on May 28 in Vienna.

“If they held the meeting today, there’s no reason to change” quotas, Horsnell said in a telephone interview from London. “Prices are stabilizing and starting to nudge up in the direction they want.....Complete Story



Do you think OPEC cuts have an influence on the price of oil anymore? Let's us know what you think, please feel free to leave a comment!


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Crude Oil Continues Rally, Overbought Conditions Remain

June crude oil was higher overnight and is trading above March's high crossing at 56.10 as it extends the rally off April's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 52.07 are needed to confirm that a short term top has been posted.

First resistance is the overnight high crossing at 58.05
Second resistance is January's high crossing at 59.66

First support is the 10 day moving average crossing at 52.94
Second support is the 20 day moving average crossing at 52.07

Today’s Stock Market Club Trading Triangles

The June Dollar was slightly higher overnight as it consolidates some of this week's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off April's high, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.30 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 84.67
Second resistance is the 20 day moving average crossing at 85.30

First support is Tuesday's low crossing at 83.62
Second support is March's low crossing at 83.14

Today’s Stock Market Club Trading Triangles

The June S&P 500 index was higher overnight as it extends this week's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. A market consolidation is way overdue at this point.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 866.35 are needed to confirm that a short term top has been posted.

Thursday's pivot point, our line in the sand is 912.25

First resistance is the overnight high crossing at 926.50
Second resistance is January's high crossing at 936.25

First support is the 10 day moving average crossing at 900.25
Second support is the 20 day moving average crossing at 881.75

The June S&P 500 Index was up 6.30 points. at 923.50 as of 5:53 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.



Will this crude oil rally continue through the summer regardless of where the equity market is headed? Please let our readers know by leaving a comment!


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Crude Oil Moves Higher On Lower Than Expected Inventory Reports

June crude oil closed higher on Wednesday on lower than expected inventory numbers as it extends the rally off April's low. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If June extends the rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 51.78 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 56.47.
Second resistance is January's high crossing at 59.66.

First support is the 10 day moving average crossing at 52.10.
Second support is the 20 day moving average crossing at 51.78.

Today’s Stock Market Club Trading Triangles

The June Dollar closed lower on Wednesday as it extends this week's decline. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, March's low crossing at 83.14 is the next downside target. Multiple closes above the 20 day moving average crossing at 85.38 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 84.84.
Second resistance is the 20 day moving average crossing at 85.38.

First support is Tuesday's low crossing at 83.62.
Second support is March's low crossing at 83.14.

Today’s Stock Market Club Trading Triangles

The June S&P 500 index closed higher on Wednesday as it extends this spring's rally. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 861.12 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 917.30.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 875.94.
Second support is the 20 day moving average crossing at 861.12.


Do you think this market has what it takes to continue higher? Please feel free to comment and let our readers know what you are thinking!

Transocean Surprises, Crude Oil Closes Above $56, Investors Show Interest In Energy Stocks

"Crude Oil Rises Above $56 on Smaller Than Forecast Supply Gain"
Crude oil rose above $56 a barrel for the first time since November after a U.S. government report showed a smaller-than-expected increase in stockpiles. Crude supplies rose 605,000 barrels to 375.3 million last week, the highest since 1990, an Energy Department report showed. A 2.5 million-barrel gain was forecast by analysts surveyed by Bloomberg News. Companies in the U.S. cut fewer workers than economists forecast, indicating the worst of the recession’s job losses may have passed, a report showed today. “The speculators are piling into oil on signs that the economy is recovering,” said Sean Brodrick, natural resource analyst with Weiss Research in Jupiter, Florida. “Inventories rose only 600,000 barrels when everyone was expecting a gain of 2.5 million, gasoline supplies dropped and employers cut fewer jobs than expected”.....Complete Story

Today’s Stock Market Club Trading Triangles

"Investors Starting to Favor Energy Stocks"
The spring survey of America's money managers conducted by Barron's finds that energy stocks are moving back into favor among investors. In responding to the question to pick the best and worst performing industry sectors for the next 6-12 months, energy was ranked third in the best category and second to last in the worst. One money manager was quoted as saying he expects to see oil prices climbing back to $100 a barrel as a worldwide economic recovery spurs inflation and the Federal Reserve attempts in coming months to mop up all the liquidity it has pumped into the financial system. He characterized the challenge the Federal Reserve faces as "walking a tightrope," and he doesn't.....Complete Story

"Transocean Reports Smaller Than Estimated Decline"
Transocean Ltd., the world’s largest offshore oil driller, reported a smaller than estimated decline in first quarter profit as the company lowered costs in response to slowing demand. Net income dropped to $942 million, or $2.93 a share, from $1.15 billion, or $3.58, a year earlier, Geneva based Transocean said today in a statement. Excluding one time items such as costs to reflect the lower value of two rigs, per-share profit was 27 cents higher than the average of 31 analyst estimates compiled by Bloomberg.

Chief Executive Officer Robert Long reduced operating costs by 17 percent during the January to March period to cope with the lowest quarterly average crude price in more than four years. Energy producers such as BP Plc are delaying projects and slashing budgets to conserve cash.....Complete Story


Today’s Stock Market Club Trading Triangles



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Crude Oil Wants To Go Higher, Remains Overbought

June crude oil was higher overnight and remains poised to extend the rally off April's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, April's high crossing at 55.85 is the next upside target. Closes below the 20 day moving average crossing at 51.67 are needed to confirm that a short term top has been posted.

Wednesday's pivot point is 54.16

First resistance is Tuesday's high crossing at 54.83.
Second resistance is April's high crossing at 55.85.

First support is the 10 day moving average crossing at 51.90.
Second support is the 2 day moving average crossing at 51.67.

Today’s Stock Market Club Trading Triangles


The June Dollar was slightly lower overnight as it consolidates some of Tuesday's decline. Stochastics and the RSI are becoming oversold but remain bearish signaling that sideways to lower prices are possible near-term.

If June extends the decline off April's high, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.39 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 84.87.
Second resistance is the 20 day moving average crossing at 85.39.

First support is Tuesday's low crossing at 83.62.
Second support is March's low crossing at 83.14.

Today’s Stock Market Club Trading Triangles


The June S&P 500 index was lower overnight due to profit taking as it consolidates some of this week's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 860.33 are needed to confirm that a short term top has been posted.

Wednesday's pivot point, our line in the sand is 901

First resistance is Tuesday's high crossing at 908
Second resistance is January's high crossing at 912.5

First support is the 10 day moving average crossing at 896.75
Second support is the 20 day moving average crossing at 889.75

The June S&P 500 Index was down 5.80 points. at 897.60 as of 5:37 AM CST. Overnight action sets the stage for a lower opening by the June S&P 500 index when the day session begins later this morning.

Key Market Events To Watch......

10:30 AM ET. May 1

US Energy Dept Oil Inventories

Crude Oil Stocks (previous 374.7M)

Crude Oil Stocks (Net Change) (expected +2M; previous +4.1M)

Gasoline Stocks (previous 212.6M)

Gasoline Stocks (Net Change) (expected +500K; previous -4.7M)

Distillate Stocks (previous 144.1M)

Distillate Stocks (Net Change) (Expected +1M; previous +1.8M)

Refinery Usage (expected 82.9%; previous 82.7%)


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Crude Oil's Low Range Close Sets Up Lower Opening For Wednesday

June crude oil closed lower due to profit taking on Tuesday as it consolidates some of its recent gains. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends the rally, April's high crossing at 55.85 is the next upside target. Closes below the 10 day moving average crossing at 51.36 are needed to confirm that a short term low has been posted.

First resistance is today's high crossing at 54.83.
Second resistance is April's high crossing at 55.85.

First support is the 20 day moving average crossing at 51.56.
Second support is the 10 day moving average crossing at 51.36.

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The June Dollar closed higher due to short covering on Tuesday as it consolidated some of Monday's decline. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, March's low crossing at 83.14 is the next downside target. Multiple closes above the 20 day moving average crossing at 85.46 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 85.09.
Second resistance is the 20 day moving average crossing at 85.46.

First support is today's low crossing at 83.62.
Second support is March's low crossing at 83.14.

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The June S&P 500 index closed slightly higher on Tuesday. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are diverging but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 856.13 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 904.90.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 868.18.
Second support is the 20 day moving average crossing at 856.13.



Barclay's reported today that they see Crude oil trading $71 dollars in the near future. Do you agree? Please feel free to comment!



Create FREE Portfolio


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Majors Drilling In Brazil Despite Low Prices, Barclays Calls For $71 Oil, Crude Oil Lower On Inventory Fears

"Crude Oil Falls On Speculation U.S. Supplies Climbed Last Week"
Crude oil fell from a five month high on speculation a government report will show that U.S. supplies climbed to the highest level in 18 years. An Energy Department report tomorrow will probably show that crude oil inventories increased 2.5 million barrels last week, according to a Bloomberg News survey. Prices surged yesterday as the Standard & Poor’s 500 Index erased its 2009 loss and pending sales of existing U.S. homes jumped. “The market keeps rising on a rather shaky foundation,” said Bill O’Grady, chief markets strategist at Confluence Investment Management in St. Louis. "You are still sitting on a lot of inventory".....Complete Story

"Foreign Oil Majors Drilling in Brazil Despite Oil Prices"
Foreign oil companies continue prospecting for crude at Brazilian concessions, including the key BMS22 block in the Santos Basin, despite a steep decline in oil prices and daunting costs. A series of high profile oil discoveries in the past few years has made Brazil one of the world's most exciting oil frontiers. Last week, state run energy giant Petroleo Brasileiro SA (PBR), or Petrobras, pumped the first crude from a Santos Basin sub salt well at the Tupi field. BMS22 is part of a cluster of promising Santos Basin blocks that have yielded several oil discoveries, including the nearby BMS11 block's Tupi the Western Hemisphere's largest oil discovery in 30 years.....Complete Story

"Oil May Break Resistance, Rise to $71.55: Technical Analysis"
Crude oil may be headed for $71.55 a barrel after breaking through $56.10 a barrel, according to Barclays Capital. Should the June crude oil contract push through the high of $56.10 a barrel reached on March 26, futures may climb past the Jan. 6 intraday high of $59.66 to $62 a barrel, Barclays Capital analysts, led by Jordan Kotick, said in a May 4 report. Oil could jump to $71.55 a barrel as traders attempt to exit the large number of short positions, or bets that prices will fall, creating a so called short squeeze, the analysts said. This is equal to the upward moves oil has made from a so called.....Complete Story

Crude Oil Lower Overnight, Higher Prices Possible Near Term

June crude oil traded slightly lower overnight as it consolidated some of Monday's rally but move higher as we close in on regular trading hours. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, April's high crossing at 55.85 is the next upside target. Closes below the 10 day moving average crossing at 51.42 are needed to confirm that a short term low has been posted.

We will be watching the SP 500 and the U.S. dollar closely as we expect a pull back in the markets to take crude oil down with it. We still are only playing crude on the long side as this bull run is a train we won't get in front of until the SP trades in the 950 area.

Tuesday's pivot point is 53.90

First resistance is Monday's high crossing at 54.64.
Second resistance is the reaction high crossing at 54.81.

First support is the 20 day moving average crossing at 51.59.
Second support is the 10 day moving average crossing at 51.42.

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The June S&P 500 index was slightly higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 856.14 are needed to confirm that a short term top has been posted.

Tuesday's pivot point, our line in the sand is 895. Above 895 we are bullish and look to take profits near 1st resistance.

First resistance is the overnight high crossing at 913.25
Second resistance is January's high crossing at 924.75

First support is the 10 day moving average crossing at 884.50
Second support is the 20 day moving average crossing at 866

The June S&P 500 Index was up 0.40 points. at 903.20 as of 5:58 AM CST. Overnight action sets the stage for a steady to higher opening by the June S&P 500 index when the day session begins later this morning.

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The June Dollar was lower overnight as it extends last week's decline. Stochastics and the RSI are becoming oversold but remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.44 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 85.05.
Second resistance is the 10 day moving average crossing at 85.44.

First support is the overnight low crossing at 83.81.
Second support is March's low crossing at 83.14.


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Crude Oil Closes Higher, Bulls Have The Technical Advantage

June crude oil closed up $1.16 at $54.36 a barrel today. Prices closed near the session high today and hit a fresh three week high, amid a stronger U.S. stock market and a weaker U.S. dollar. Bulls are gaining fresh upside near term technical momentum.

The U.S. stock indexes closed solidly higher and closed at multi month highs today, amid some better U.S. housing starts data and ideas the U.S. economy has seen the worst. The bulls have gained fresh near term upside technical momentum. The fact that so many traders are looking for a downside correction soon is in fact a bullish technical clue.

The June U.S. dollar index closed down 76 points at 83.94 today. Prices closed near the session low and hit a fresh six week low. Bears are gaining downside near term technical momentum.


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Oil Hits Highest Prices In 5 Weeks, Alaska Projects Revving Up, Oil Execs On Energy Independence

"Oil Rises to Highest in 5 Weeks as Pending Home Sales Increase"
Crude oil rose to a five week high as the number of Americans signing contracts to buy previously owned homes jumped along with spending on U.S. construction projects, signaling energy demand may improve with the economy.

Oil climbed as much as 1.4 percent and the Standard & Poor’s 500 Index came within 1 percent of erasing its 2009 loss as the National Association of Realtors said the index of signed purchase agreements jumped 3.2 percent in March, compared with a 2 percent gain in February.....Complete Story

"Two New Projects Revving Up in Alaska's Oil Patch"
Oil prices are down and some oil-patch work is being throttled back, but North Slope producers are going full steam ahead on two large projects. Several hundred people have been put to work and the numbers will increase as the work continues, the companies involved say. One project underway is at Point Thomson, 60 miles east of Prudhoe Bay, where ExxonMobil Corp. is rigging up to begin drilling a large undeveloped gas and condensate field.

The company has completed the move of a large drill rig and other equipment to the site over 50 miles of ice road. Nabors Rig 19-E, one of the largest in Alaska, is now being reassembled. Plans are to start drilling in early May and continue operations through the summer.....Complete Story

"U.S. Energy Independence? Get Real, Oil Execs Say in Survey"
Most oil industry executives scoff at the idea that the U.S. can wean itself off foreign crude in the next couple of decades, a survey showed. Only 16 percent of oil and natural gas executives said that by 2030 the U.S. will be able to depend solely on its own energy supplies, according to a survey by KPMG LLP’s Global Energy Institute. A majority said it will be after 2015 before it’s “viable” to mass produce alternative energy.

“The executives’ perceptions of energy independence mirror their views on the viability of alternatives in the near term,” Bill Kimble, executive director of the institute, said in a statement. KPMG surveyed 382 U.S. financial executives in the oil and gas business last month.....Complete Story


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Crude Oil Appears To Be Consolidating Friday's Rally

Crude oil is trading lower as we close in on the regular trading session and was steady to slightly lower overnight as it consolidates some of last Friday's rally but remains above the 20 day moving average crossing at 51.46. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, the reaction high crossing at 54.81 is the next upside target. Closes below the 10 day moving average crossing at 50.69 are needed to confirm that a short term low has been posted.

Monday's pivot point for crude oil is 52.21

First resistance is last Friday's high crossing at 53.65.
Second resistance is the reaction high crossing at 54.81.

First support is the 20 day moving average crossing at 51.46.
Second support is the 10 day moving average crossing at 50.68.

Our weekly forecast is to buy the dips this week, selling into the 54.50 area as long as we continue trading this current range.

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The June S&P 500 index was higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 851.44 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 873

First resistance is last Thursday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 860.52.
Second support is the 20 day moving average crossing at 851.44.

The June S&P 500 Index was up 5.60 points. at 881.70 as of 5:45 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.

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The June Dollar was steady to slightly higher overnight as it consolidates some of last week's decline. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends last week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.54 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 85.42.
Second resistance is the 10 day moving average crossing at 85.54.

First support is last Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.


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Crude Oil Closes Higher, Higher Prices Possible Near Term

June crude oil closed sharply higher on Friday and above the 20 day moving average crossing at 51.54 confirming that a short term low has been posted. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the reaction high crossing at 54.81 is the next upside target. Closes below the 10 day moving average crossing at 50.21 are needed to confirm that a short term low has been posted.

First resistance is today's high crossing at 53.65.
Second resistance is the reaction high crossing at 54.81.

First support is the 10 day moving average crossing at 50.21.
Second support is Monday's low crossing at 48.01.

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The June Dollar closed slightly lower on Friday as consolidates some of Thursday rally. The mid range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, March's low crossing at 83.14 is the next downside target. Multiple closes above the 10 day moving average crossing at 85.64 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 85.53.
Second resistance is the 10 day moving average crossing at 85.64.

First support is Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.

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The June S&P 500 index closed higher on Friday as it extended the rally off March's low. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are diverging but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 849.22 are needed to confirm that a short term top has been posted.

First resistance is Friday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 855.31.
Second support is the 20 day moving average crossing at 849.22.


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Light Trading Volume Expected For May Day Holiday

June crude oil was steady to slightly lower overnight as it consolidates above resistance marked by the 10 day moving average crossing at 50.01.

The commodities markets will be effected by possible light volume on Friday due to the May Day Holiday being celebrated in much of Europe.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 51.43 are needed to confirm that a short term low has been posted.

If June renews this month's decline, the reaction low crossing at 45.11 is the next downside target.

Friday's pivot point, our line in the sand is 51.01

First resistance is Thursday's high crossing at 51.94.
Second resistance is the reaction high crossing at 53.21.

First support is Monday's low crossing at 48.01.
Second support is last Tuesday's low crossing at 46.72.

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The June S&P 500 index was higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term.

That being said we see this as a swing day, a great opportunity to go short if we touch the high's of Wednesday. This market is trying to roll over for the bears.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 849.26 are needed to confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 873.75

First resistance is Thursday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 855.41.
Second support is the 20 day moving average crossing at 849.26.

The June S&P 500 Index was up 3.70 points. at 873.70 as of 5:59 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.

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The June Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends this week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 10 day moving average crossing at 85.63 would temper the near term bearish outlook in the market.

First resistance is the 20 day moving average crossing at 85.52.
Second resistance is the 10 day moving average crossing at 85.63.

First support is Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.



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