Crude Oil Closes Lower, Lower Opening Monday Is Likely

June crude oil closed lower due to profit taking on Friday and below initial support marked by the 10 day moving average crossing at 57.06. The low range close sets the stage for a steady to lower opening on Monday.

Stochastics and the RSI are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 53.65 are needed to confirm that a short term top has been posted.

Most professional crude oil traders are looking at the $54 dollar range as the line in the sand. If we can break down through that level $49 dollars should be right around the corner. Momentum in the market correction's of the Dow, SP 500 and Nasdaq make that likely at this point.

If June renews the rally off April's low, the reaction high crossing at 61.33 is the next upside target.

First resistance is Tuesday's high crossing at 60.08
Second resistance is the reaction high crossing at 61.33

First support is today's low crossing at 56.51
Second support is the 20 day moving average crossing at 53.65

Today’s Stock Market Club Trading Triangles

The June Dollar closed higher due to short covering on Friday as it consolidates some of this month's decline. The high range close sets the stage for a steady to higher opening on Monday.

Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short term low might be in or is near. Multiple closes above the 20 day moving average crossing at 84.44 are needed to confirm that a short term low has been posted.

If June extends this month's decline, the 87% retracement level of the December-March rally crossing at 81.49 is the next downside target.

First resistance is the 10 day moving average crossing at 83.25
Second resistance is the 20 day moving average crossing at 84.44

First support is Wednesday's low crossing at 81.98
Second support is the 87% retracement level crossing at 81.49

Free Analysis For DXO

The June S&P 500 index closed lower on Friday as it extended this week's decline. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

Closes below the 20 day moving average crossing at 879.21 are needed to confirm that a short term top has been posted. Closes above the 10 day moving average crossing at 902.77 would temper the near term bearish outlook in the market.

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

First resistance is the 10 day moving average crossing at 902.77
Second resistance is last Thursday's high crossing at 929.00

First support is the 20 day moving average crossing at 879.21
Second support is the reaction low crossing at 838.80