Friday, February 20, 2009

Crude Oil's High Range Close Sets The Stage For Higher Open On Monday


March crude oil closed slightly lower on Friday due to profit taking as it consolidated some of Thursday's rally.

The high range close sets the stage for a steady to higher opening on Monday.

Stochastics and the RSI have turned bullish hinting that sideways to higher prices are possible near term.

Closes above the reaction high crossing at $42.68 are needed to confirm that a short term low has been posted.

If March renews this month's decline, psychological support crossing at $30.00 is the next downside target.

First resistance is the 20 day moving average crossing at $39.70.

Second resistance is the reaction high crossing at $42.68.

First support is last Thursday's low crossing at $33.55.

Second support is psychological support crossing at $30.00.

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