Oil Market Absorbs Bearish DOE Report, Closes Higher

Crude oil closed slightly higher on Wednesday after the market absorbed today's bearish DOE stocks report. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If September extends the rally off July's low, the reaction high crossing at 74.25 is the next upside target. Closes below the 20 day moving average crossing at 65.76 would confirm that a short term top has been posted.

First resistance is Monday's high crossing at 72.20
Second resistance is the reaction high crossing at 74.25

First support is the 10 day moving average crossing at 68.54
Second support is the 20 day moving average crossing at 65.76

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Natural gas closed higher on Wednesday as it extends this week's rally. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signaling that additional strength is possible near term.

If September extends the rally off July's low, June's high crossing at 4.716 is the next upside target.

First resistance is Monday's high crossing at 4.16
Second resistance is June's high crossing at 4.72

First support is the 10 day moving average crossing at 3.81
Second support is the 20 day moving average crossing at 3.74

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The U.S. Dollar closed lower on Wednesday as it extends this month's decline below trading range support crossing at 78.83. The mid range close sets the stage for a steady to lower opening on Thursday. 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 75.73 is the next downside target. Closes above last Wednesday's high crossing at 79.81 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 78.65
Second resistance is the 20 day moving average crossing at 79.15

First support is Tuesday's low crossing at 77.55
Second support is weekly support crossing at 75.73