Crude Oil Bulls Attempt to Gain The Momentum Trading Above The 10 Day Moving Average

Crude oil was higher overnight as it extends this week's short covering rally above the 10 day moving average. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 74.33 are needed to confirm that a short term low has been posted. If January resumes the decline off October's high, the 87% retracement level of this fall's rally crossing at 68.16 is the next downside target.

Friday's pivot point, our line in the sand is 72.33

First resistance is the overnight high crossing at 74.29
Second resistance is the 20 day moving average crossing at 74.33

First support is the 10 day moving average crossing at 71.74
Second support is Monday's low crossing at 68.59

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Natural gas was higher overnight and is extending this month's rally above the 75% retracement level of the October-December decline crossing at 5.807. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If January extends this month's rally, the 87% retracement level of the October-December decline crossing at 6.036 is the next upside target. Closes below the 20 day moving average crossing at 5.065 would temper the near term bullish outlook in the market.

Natural gas pivot point for Friday is 5.711

First resistance is the overnight high crossing at 5.920
Second resistance is the 87% retracement level of the October-December decline crossing at 6.036

First support is the 10 day moving average crossing at 5.344
Second support is the 20 day moving average crossing at 5.065

Just click here for your FREE trend analysis of UNG

The U.S. Dollar was lower due to profit taking overnight as it consolidates some of this month's rally. Stochastics and the RSI are overbought but remain neutral signaling that additional gains are possible near term.

If March extends this month's rally, the 38% retracement level of the 2008-2009 decline crossing at 79.72 is the next upside target. Closes below the 20 day moving average crossing at 76.13 would confirm that a short term top has been posted.

First resistance is Monday's high crossing at 78.28
Second resistance is the 38% retracement level of the 2008-2009 decline crossing at 79.72

First support is the 10 day moving average crossing at 76.99
Second support is the 20 day moving average crossing at 76.13



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