Crude Oil Closes Higher, Are Higher Prices Possible Near term?

June crude oil closed higher on Wednesday and the high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 51.57 are needed to confirm that a short term low has been posted. Closes below the reaction low crossing at 46.72 would renew this month's decline while opening the door for a possible test of the reaction low crossing at 45.08.

First resistance is last Friday's high crossing at 51.75.
Second resistance is the reaction high crossing at 53.21.

First support is last Wednesday's low crossing at 46.72.
Second support is the reaction low crossing at 45.08.

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The June Dollar closed lower on Wednesday and extended the decline off this month's high. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends the decline, the reaction low crossing at 84.10 is the next downside target. Multiple closes above the 10 day moving average crossing at 85.87 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 85.59.
Second resistance is the 10 day moving average crossing at 85.87.

First support is today's low crossing at 84.24.
Second support is the reaction low crossing at 84.10.

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The June S&P 500 index closed higher on Wednesday as it extended the rally off March's low. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are diverging but remain bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 844.32 are needed to confirm that a short term top has been posted.

First resistance is today's high crossing at 879.00.
Second resistance is January's high crossing at 937.00.

First support is the 20 day moving average crossing at 844.32.
Second support is last Wednesday's low crossing at 823.10.


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