Crude Oil Continues Rally, Overbought Conditions Remain

June crude oil was higher overnight and is trading above March's high crossing at 56.10 as it extends the rally off April's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, January's high crossing at 59.66 is the next upside target. Closes below the 20 day moving average crossing at 52.07 are needed to confirm that a short term top has been posted.

First resistance is the overnight high crossing at 58.05
Second resistance is January's high crossing at 59.66

First support is the 10 day moving average crossing at 52.94
Second support is the 20 day moving average crossing at 52.07

Today’s Stock Market Club Trading Triangles

The June Dollar was slightly higher overnight as it consolidates some of this week's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off April's high, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.30 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 84.67
Second resistance is the 20 day moving average crossing at 85.30

First support is Tuesday's low crossing at 83.62
Second support is March's low crossing at 83.14

Today’s Stock Market Club Trading Triangles

The June S&P 500 index was higher overnight as it extends this week's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. A market consolidation is way overdue at this point.

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

Thursday's pivot point, our line in the sand is 912.25

First resistance is the overnight high crossing at 926.50
Second resistance is January's high crossing at 936.25

First support is the 10 day moving average crossing at 900.25
Second support is the 20 day moving average crossing at 881.75

The June S&P 500 Index was up 6.30 points. at 923.50 as of 5:53 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.



Will this crude oil rally continue through the summer regardless of where the equity market is headed? Please let our readers know by leaving a comment!


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