Crude Oil Bulls Maintain The Advantage Into Short U.S. Session

Crude oil was higher overnight as it extends Tuesday's rally above the 20 day moving average. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends this week's rally, the reaction high crossing at 80.40 is the next upside target. Closes below the 10 day moving average crossing at 74.11 are needed to confirm that a short term top has been posted.

Thursday's pivot point, our line in the sand is 75.97

First resistance is the overnight high crossing at 77.48
Second resistance is the reaction high crossing at 80.40

First support is the 20 day moving average crossing at 75.29
Second support is the 10 day moving average crossing at 74.11

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Natural gas was higher overnight as it extends this week's rally. Stochastics and the RSI are overbought but are 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 5.304 would confirm that a short term top has been posted.

Thursday's pivot point for natural gas is 5.759

First resistance is Monday's high crossing at 5.979
Second resistance is the 87% retracement level of the October-December decline crossing at 6.077

First support is the 10 day moving average crossing at 5.665
Second support is the 20 day moving average crossing at 5.304

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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 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 76.76 would confirm that a short term top has been posted. 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.

First resistance is 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 10 day moving average crossing at 77.78
Second support is the 20 day moving average crossing at 76.76

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