April crude oil closed sharply lower on Monday due to profit taking as it consolidated some of last week's rally.
Today's decline lead to a close below the 10 day moving average crossing at $40.75 thereby tempering the near term friendly outlook in the market.
The low range close sets the stage for a steady to lower opening on Tuesday.
Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.
Closes above last week's high crossing at $45.30 are needed to signal that a larger degree rally into March is unfolding.
Closes below February's low crossing at $37.12 would renew this year's decline while opening the door for a possible test of psychological support crossing at $35.00 later this year.
First resistance is last Thursday's high crossing at $45.30.
Second resistance is the reaction high crossing at $47.99.
First support is today's low crossing at $39.84.
Second support is February's support crossing at $37.12.
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