Bottoming U.S. Dollar Threatens Crude Oil Rally

Crude oil was slightly higher due to short covering overnight as it consolidates some of Monday's decline. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 75.48 would confirm that a short term top has been posted. If December extends this month's rally, weekly resistance crossing at 84.83 is the next upside target.

Tuesday's pivot point, our line in the sand is 79.39

First resistance is last Wednesday's high crossing at 82.00
Second resistance is weekly resistance crossing at 84.83

First support is Monday's low crossing at 77.97
Second support is the 20 day moving average crossing at 75.48

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Natural gas was slightly higher due to short covering overnight as it consolidates some of Monday's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. Monday's close below the reaction low crossing at 5.280 confirms that a short term top has been posted.

If December extends the decline off last week's high, the 62% retracement level of the September-October rally crossing at 4.970 is the next downside target. Closes above the 20 day moving average crossing at 5.581 would confirm that a short term low has been posted.

First resistance is Monday's gap crossing at 5.473
Second resistance is the 20 day moving average crossing at 5.581

First support is the overnight low crossing at 5.173
Second support is the 62% retracement level at 4.970

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The U.S. Dollar was lower due to profit taking overnight as it consolidates some of Monday's rally. Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at 76.16 are needed to confirm that a short term low has been posted. If December renews this year's decline, monthly support crossing at 73.39 is the next downside target.

First resistance is the 20 day moving average crossing at 76.16
Second resistance is the reaction high crossing at 76.85

First support is the 10 day moving average crossing at 75.65
Second support is last Wednesday's low crossing at 75.08