Crude Oil Signals a Short Term Top

Crude oil closed lower on Monday as it extended last week's trading range. The mid range close sets the stage for a steady opening on Tuesday. 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 66.77 are needed to confirm that a short term top has been posted. If September extends the rally off July's low, the reaction high crossing at 74.25 is the next upside target.

First resistance is last Friday's high crossing at 72.84
Second resistance is the reaction high crossing at 74.25

First support is the 10 day moving average crossing at 69.55
Second support is the 20 day moving average crossing at 67.30

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The U.S. Dollar closed higher on Monday as it extended last Friday's breakout above the 20 day moving average crossing at 78.94 confirming that a short term low has been posted. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If September extends today's rally, the reaction high crossing at 79.91 is the next upside target. Closes below the 10 day moving average crossing at 78.65 would temper the near term friendly outlook.

First resistance is today's high crossing at 79.51
Second resistance is the reaction high crossing at 79.81

First support is the 10 day moving average crossing at 78.65
Second resistance is last Wednesday's low crossing at 77.52

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Natural gas closed lower on Monday as it extended last Friday's breakout below the 20 day moving average. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.

If September extends today's decline, the reaction low crossing at 3.459 is the next downside target. If September renews the rally off July's low, the reaction high crossing at 4.261 is the next upside target.

First resistance is the 10 day moving average crossing at 3.78
Second resistance is last Monday's high crossing at 4.16

First support is today's low crossing at 3.61
Second support is the reaction low crossing at 3.46