Crude Oil Trades Higher on China Import Numbers

Crude oil was higher due to short covering overnight while extending last week's narrow trading range. Stochastics and the RSI are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 67.81 would 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.

Crude oil pivot point for Tuesday is 70.76

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 69.89
Second support is the 20 day moving average crossing at 67.81

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The September Dollar was lower due to profit taking overnight as it consolidates some of the rally off last week's low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 79.77 are needed to confirm that a short term low has been posted.

If September renews this summer's decline, the 75% retracement level of the 2008-2009 rally crossing at 75.73 is the next downside target.

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

First support is the 20 day moving average crossing at 78.88
Second support is the 10 day moving average crossing at 78.67

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Natural gas was higher due to short covering overnight as it consolidates some of last week's decline but remains below broken support marked by the 20 day moving average crossing at 3.775. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If September extends this month's decline, the reaction low crossing at 3.459 is the next downside target. Closes above the 10 day moving average crossing at 3.780 would temper the near term bearish outlook in the market.

Tuesday's pivot point for natural gas, 3.68

First resistance is the 20 day moving average crossing at 3.78
Second resistance is last Monday's high crossing at 4.16

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