Crude Oil Bulls Maintain The Advantage Despite Profit Taking

Crude oil was slightly lower due to light profit taking overnight as it consolidates some of its recent gains. Stochastics and the RSI are overbought but 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 75.38 are needed to confirm that a short term top has been posted.

Wednesday's pivot point, our line in the sand is 78.76

First resistance is Tuesday's high crossing at 79.39
Second resistance is the reaction high crossing at 80.40

First support is the 10 day moving average crossing at 76.20
Second support is the 20 day moving average crossing at 75.38

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Natural gas was slightly 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 5.423 would confirm that a short term top has been posted.

Natural gas pivot point for Wednesday is 5.900

First resistance is Tuesday's high crossing at 6.038
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 5.787
Second support is the 20 day moving average crossing at 5.423

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The U.S. Dollar was higher overnight as it consolidates above initial support marked by the 10 day moving average crossing at 78.15. However, stochastics and the RSI are turning neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 77.22 are needed to 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 Tuesday's low crossing at 77.67
Second support is the 20 day moving average crossing at 77.22

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