Oil, Natural Gas Market Commentary For Thursday Morning

Crude oil was lower due to profit taking overnight as it consolidates some of the rally off July's low. Stochastics and the RSI are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term.

If September extends the rally, the reaction high crossing at 74.25 is the next upside target. Closes below the 20 day moving average crossing at 66.27 would confirm that a short term top has been posted.

Crude oil pivot point for Thursday is 71.19

First resistance is the overnight high crossing at 72.42
Second resistance is the reaction high crossing at 74.25

First support is the 10 day moving average crossing at 69.00
Second support is the 20 day moving average crossing at 66.27

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Natural gas was slightly higher overnight and is poised to extend this week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 4.05 are needed to confirm that a low has been posted while opening the door for a larger degree rebound during the first half of August.

If September renews last week's decline, July's low crossing at 3.366 is the next downside target.

Natural gas pivot point for Thursday is 4.00

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

First support is the 10 day moving average crossing at 3.84
Second support is the 20 day moving average crossing at 3.76

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