Crude Oil Trading Lower, Breaking Through Critical Levels

Crude oil is trading lower as it extends Monday's breakout to the downside of this spring's symmetrical triangle formation.

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 are needed to confirm that a short term top has been posted.

Closes above the 20 day moving average crossing at 50.38 are needed to confirm that a short term low has been posted.

Tuesday's pivot point, our line in the sand is 49.61

First resistance is the 10 day moving average crossing at 49.15.
Second resistance is the 20 day moving average crossing at 50.38.

First support is the overnight low crossing at 45.19.
Second support is the reaction low crossing at 43.74.

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4:30 PM ET. Apr 17...API Oil Industry Report

.....................Crude Stocks (Net Change) (previous +6.5M)

.....................Gasoline Stocks (Net Change) (previous -613K)

.....................Distillate Stocks (Net Change) (previous +87K)

.....................Refinery Runs (previous 79.9%)

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The June S&P 500 index was steady to slightly higher due to short covering in the overnight trading session as it consolidates some of Monday's decline, but has now moved lower has we near the regular trading session.

Stochastics and the RSI are overbought and are turning bearish signaling that a short term top appears to have been posted. Closes below the 20 day moving average crossing at 828.86 are needed to confirm that a short term top has been posted.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target.

The pivot point, our line in the sand is 843.25.

First resistance is last Friday's high crossing at 867.00.
Second resistance is January's high crossing at 937.00.

First support is the 20 day moving average crossing at 828.86.
Second support is the reaction low crossing at 802.60.

The June S&P 500 Index was up 1.50 points. at 834.20 as of 5:51 AM CST. But has now sharply sold off [6+ points] before the opening of regular trading hours.

It had appeared that the overnight action set the stage for a steady to higher opening by the June S&P 500 index when the day session begins later this morning.

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The June Dollar was lower due to light profit taking overnight as it consolidates some of Monday's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends Monday's rally, the reaction high crossing at 88.26 is the next upside target. Closes below last Monday's low crossing at 84.72 would confirm that a short term top has been posted.

First resistance is Monday's high crossing at 87.22.
Second resistance is the reaction high crossing at 88.26.

First support is the 10 day moving average crossing at 85.82.
Second support is the 20 day moving average crossing at 85.48.


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