Crude Oil Confirms Double Top, Lower Prices Likely Near Term

Crude oil was lower overnight as it extends last Friday's decline below the 20 day moving average, which confirmed that a double top with June's high has been posted. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If September extends the decline off last week's high, the reaction low crossing at 62.70 is the next downside target. Closes above the 10 day moving average crossing at 70.03 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 68.74

First resistance is the 20 day moving average crossing at 68.67
Second resistance is the 10 day moving average crossing at 70.03

First support is the overnight low crossing at 65.65
Second support is the reaction low crossing at 62.70

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The U.S. Dollar was higher overnight as it extends last Friday's rally. Stochastics and the RSI are turning neutral signaling that sideways to higher prices are possible near term. If September extends the overnight rally, the reaction high crossing at 79.81 is the next upside target.

Closes above the reaction high crossing at 79.81 are needed to confirm that a short term low has been posted and would open the door for a larger degree rebound during August. Closes below the reaction low crossing at 77.52 would renew this summer's decline.

First resistance is the reaction high crossing at 79.51
Second resistance is the reaction high crossing at 79.81

First support is last Wednesday's low crossing at 78.33
Second support is this month's low crossing at 77.52

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Natural gas was lower overnight and is testing weekly support crossing at 3.155 as it extends this month's decline. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If September extends this month's decline, weekly support crossing at 2.640 is the next downside target. Closes above the 20 day moving average crossing at 3.681 would temper the near term bearish outlook in the market.

Natural gas pivot point for Monday is 3.29

First resistance is broken trading range support crossing at 3.37
Second resistance is the 10 day moving average crossing at 3.58

First support is the overnight low crossing at 3.14
Second support is weekly support crossing at 2.64