March crude oil closed lower on Wednesday confirming yesterday's breakout below December's low crossing at $38.00.
The stage is set for a test of psychological support crossing at $35.00.
The low range close sets the stage for a steady to lower opening on Thursday.
Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.
Closes above the 20 day moving average crossing at $41.65 would temper the near term bearish outlook in the market.
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 $39.88.
Second resistance is the 20 day moving average crossing at $41.65.
First support is today's low crossing at $35.65.
Second support is psychological support crossing at $35.00.
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