Friday's Short Covering Rally Sets The Stage For Steady Open For Monday

Crude oil closed lower on Friday due to profit taking as it consolidated some of Thursday's rally. A short covering rally tempered early losses and the mid range close sets the stage for a steady opening on Monday.

Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 62.82 would confirm that a short term top has been posted.

If July extends the rally off April's low, the 38% retracement level of the 2008-2009 decline crossing at 82.38 is the next upside target.

First resistance is today's high crossing at 70.32
Second resistance is the 38% retracement level crossing at 82.38

First support is the 10 day moving average crossing at 65.94
Second support is the 20 day moving average crossing at 62.82

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July natural gas closed higher on Friday due to short covering as it consolidated some of this week's decline. The mid range close sets the stage for a steady opening on Monday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If July renews last month's decline, April's low crossing at 3.395 is the next downside target. Closes above March's high crossing at 4.721 are needed to confirm that an important bottom has been posted.

First resistance is Tuesday's high crossing at 4.284
Second resistance is May's high crossing at 4.690

First support is Thursday's low crossing at 3.550
Second support is last Tuesday's low crossing at 3.500

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The June Dollar closed sharply higher on Friday as it consolidated some of this spring's decline. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near. Multiple closes above the 20 day moving average crossing at 80.90 are needed to confirm that a short term low has been posted.

If June extends this spring's decline, the 75% retracement level of the 2008-2009 rally crossing at 77.55 is the next downside target.

First resistance is the 20 day moving average crossing at 80.90
Second resistance is the reaction high crossing at 81.19

First support is Tuesday's low crossing at 78.18
Second support is the 75% retracement level crossing at 77.55

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