Crude Oil and Natural Gas Market Commentary For Tuesday Morning

Crude oil was slightly lower due to light profit taking overnight as it consolidates some of last week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If February extends this rally, the reaction high crossing at 80.40 is the next upside target. Closes below the 20 day moving average crossing at 75.42 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 78.55

First resistance is Monday's high crossing at 79.12
Second resistance is the reaction high crossing at 80.40

First support is the 10 day moving average crossing at 75.58
Second support is the 20 day moving average crossing at 75.42

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Natural gas was lower due to light profit taking overnight as it consolidates some of Monday's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends this month's rally, the 87% retracement level of the October-December decline crossing at 6.077 is the next upside target. Closes below the 20 day moving average crossing at 5.380 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 6.025
Second resistance is the 87% retracement level of the October-December decline crossing at 6.077

Natural gas pivot point for Monday is 5.938

First support is the 10 day moving average crossing at 5.774
Second support is the 20 day moving average crossing at 5.380

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The U.S. Dollar was lower overnight and trading below initial support marked by the 10 day moving average crossing at 78.02. 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 77.03 would confirm that a short term top has been posted. If March renews this month's rally, the 38% retracement level of the 2008-2009 decline crossing at 79.72 is the next upside target.

First resistance is last Tuesday's high crossing at 78.77
Second resistance is the 38% retracement level of the 2008-2009 decline crossing at 79.72

First support is the overnight low crossing at 77.71
Second support is the 20 day moving average crossing at 77.03

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