May crude oil closed higher on Thursday as it extends this month's rally. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.
If May extends this month's rally, January's high crossing at 58.31 is the next upside target. Closes below the 20 day moving average crossing at 48.67 would confirm that a short term top has been posted.
First resistance is today's high crossing at 54.66.
Second resistance is January's high crossing at 58.31.
First support is the 10 day moving average crossing at 51.27.
Second support is the 20 day moving average crossing at 48.67.
Pre market crude oil is already trading down in the 52.69 area. We are going short for a scalp trade against the trend as we look for crude oil to follow the SP 500 down at the opening. Don't get stuck in this trade, we will probably take our profits at the 10 day moving average 51.27.
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