March crude oil was slightly higher overnight due to short covering as it consolidates some of Tuesday's decline but remains below broken support marked by December's low crossing at $38.00.
Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.
If March extends the decline, psychological support crossing at $35.00 is the next downside target.
Closes above the 20 day moving average crossing at $41.74 are needed to confirm that a short term low has been posted.
Closes above the reaction high crossing at $48.59 are needed to confirm that a trend change has taken place.
First resistance is the 10 day moving average crossing at $40.06.
Second resistance is the 20 day moving average crossing at $41.74.
First support is Tuesday's low crossing at $37.35.
Second support is psychological support crossing at $35.00.
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