Oil Prices Ease as Traders Expect Rise in Inventories

Crude oil posted an inside day with a lower close on Tuesday as it consolidated some of Monday's rally. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are 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 last Wednesday's low crossing at 62.70 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 67.88
Second support is the 20 day moving average crossing at 65.22

How to Use Money Management Stops Effectively

Natural gas posted an inside day with a lower close on Tuesday as it consolidates some of Monday's rally. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI have turned 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 3.79
Second support is last Wednesday's low crossing at 3.46