Crude Oil Appears To Be Consolidating Friday's Rally

Crude oil is trading lower as we close in on the regular trading session and was steady to slightly lower overnight as it consolidates some of last Friday's rally but remains above the 20 day moving average crossing at 51.46. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, the reaction high crossing at 54.81 is the next upside target. Closes below the 10 day moving average crossing at 50.69 are needed to confirm that a short term low has been posted.

Monday's pivot point for crude oil is 52.21

First resistance is last Friday's high crossing at 53.65.
Second resistance is the reaction high crossing at 54.81.

First support is the 20 day moving average crossing at 51.46.
Second support is the 10 day moving average crossing at 50.68.

Our weekly forecast is to buy the dips this week, selling into the 54.50 area as long as we continue trading this current range.

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The June S&P 500 index was higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are neutral to 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 851.44 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 873

First resistance is last Thursday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 860.52.
Second support is the 20 day moving average crossing at 851.44.

The June S&P 500 Index was up 5.60 points. at 881.70 as of 5:45 AM CST. Overnight action sets the stage for a 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 steady to slightly higher overnight as it consolidates some of last week's decline. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends last week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.54 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 85.42.
Second resistance is the 10 day moving average crossing at 85.54.

First support is last Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.


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