Crude Oil Signals Bearish Pricing Possible Near Term

March crude oil was slightly higher overnight due to short covering as it continues to trade sideways to lower off the late January high.

Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If March extends the decline, January's low crossing at $39.11 is the next downside target.

Closes above the 20 day moving average crossing at $42.23 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 $40.77.

Second resistance is the 20 day moving average crossing at $42.23.

First support is last Friday's low crossing at $38.60.

Second support is December's low crossing at $38.00.