March crude oil closed sharply lower on Tuesday as it consolidated some of last Friday's rally. Stochastics and the RSI are oversold and are turning bullish hinting that a short term low might be in or is near. The low range close sets the stage for a steady to lower opening on Friday. If March renews this month's decline, psychological support crossing at 30.00 is the next downside target. Closes above the 20 day moving average crossing at 40.46 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 short term low has been posted. First resistance is the 10 day moving average crossing at 38.19. Second resistance is the 20 day moving average crossing at 40.45. First support is last Thursday's low crossing at 33.55. Second support is psychological support crossing at 30.00.
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