March crude oil closed lower on Tuesday and the low range close sets the stage for a steady to lower opening on Wednesday.
Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.
If March extends this year's decline, December's low crossing at 38.00 is the next downside target.
Closes below December's low crossing at $38.00 would open the door for a possible test of psychological support crossing at $30.00 later this winter.
Closes above the 20 day moving average crossing at $42.15 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 20 day moving average crossing at $42.15.
Second resistance is the reaction high crossing at $48.59.
First support is today's low crossing at $38.41.
Second support is December's low crossing at $38.00.
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