Crude Oil Higher Overnight, Testing 20 Day Moving Average

Crude oil was higher overnight as it extends last week's rally but remains below the 20 day moving average crossing at 64.65. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 64.65 are needed to confirm that a short term low has been posted. If August renews the decline off June's high, the 62% retracement level of the February-June rally crossing at 54.97 is the next downside target.

Crude oil's pivot point for Tuesday is 65.17

First resistance is the 20 day moving average crossing at 64.65
Second resistance is Monday's high crossing at 64.90

First support is the 10 day moving average crossing at 61.49
Second support is the reaction low crossing at 58.32



Natural gas was lower due to profit taking overnight as it consolidates some of its recent gains but remains above the 20 day moving average crossing at 36.23. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If August extends the rally off this month's low, the reaction high crossing at 4.138 is the next upside target. Closes below the 10 day moving average crossing at 3.476 would temper the near term friendly outlook in the market.

Tuesday's pivot point for natural gas is 3.65

First resistance is last Friday's high crossing at 3.79
Second resistance is the reaction high crossing at 4.14

First support is the 10 day moving average crossing at 3.48
Second support is last Monday's low crossing at 3.23