Crude Oil Should Open Higher Wednesday, Lower Prices Still Likely Near Term

May crude oil closed higher on Tuesday due to short covering but remains below the 20 day moving average crossing at 49.53.

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

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

If May extends Monday's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.78 would temper the near term bearish outlook.

First resistance is Monday's high crossing at 52.25.
Second resistance is last Thursday's high crossing at 54.66.

First support is today's low crossing at 47.77.
Second support is the reaction low crossing at 43.74.

And since the crude-dollar trade seems to be on......

The June Dollar closed lower on Tuesday due to profit taking as it consolidates some of Monday's rally but remains above the 10 day moving average. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the 20 day moving average crossing at 86.71 is the next upside target. Closes above the 20 day moving average crossing at 86.71 would confirm that a short term low has been posted.

Closes below the weekly uptrend line crossing near 83.00 would confirm that a major top in the Dollar has been posted while opening the door for a larger degree decline this spring.

First resistance is Monday's high crossing at 86.61.
Second resistance is the 20 day moving average crossing at 86.71.

First support is the 10 day moving average crossing at 84.79.
Second support is the reaction low crossing at 83.14.