Oil Post Key Reversal Day, Lower Prices Possible Near Term

Crude oil posted a key reversal down on Tuesday and closed below the 20 day moving average crossing at 71.85 confirming that a double top with June's high as been posted. Stochastics and the RSI are diverging and are turning neutral signaling that sideways to lower prices are possible near term. The low range close sets the stage for a steady to lower opening on Wednesday.

Closes below last Monday's low crossing at 67.42 would confirm that a short term top has been posted. If October extends this month's rally, June's high crossing at 75.27 is the next upside target.

First resistance is today's high crossing at 75.00
Second resistance is June's high crossing at 75.27

First support is today's low crossing at 71.11
Second support is last Monday's low crossing at 67.42

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The U.S. Dollar closed slightly lower on Tuesday as it consolidates below the 20 day moving average crossing at 78.62. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If September renews last week's decline, the reaction low crossing at 77.52 is the next downside target. Closes above last Monday's high crossing at 79.36 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 78.66
Second resistance is last Monday's high crossing at 79.69

First support is last Friday's low crossing at 77.81
Second resistance is the reaction low crossing at 77.52

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Natural gas closed lower on Tuesday. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but are neutral to bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 3.429 would confirm that a short term low has been posted.

If September extends this month's decline, monthly support crossing at 2.640 is the next downside target.

First resistance is the 10 day moving average crossing at 3.10
Second resistance is broken support crossing at 3.37

First support is Monday's low crossing at 2.73
Second support is monthly support crossing at 2.64