Crude Oil Bulls Maintain The "Holiday Advantage"

Crude oil was higher overnight as it extends 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 10 day moving average crossing at 74.85 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 77.50

First resistance is the overnight high crossing at 78.68
Second resistance is the reaction high crossing at 80.40

First support is the 20 day moving average crossing at 75.39
Second support is the 10 day moving average crossing at 74.85
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Natural gas was higher overnight as it consolidates some of last Thursday's decline. 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 5.322 would confirm that a short term top has been posted.

Natural gas pivot point for Monday is 5.723

First resistance is last Thursday's high crossing at 5.984
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 5.704
Second support is the 20 day moving average crossing at 5.322

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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 76.90 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 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 10 day moving average crossing at 77.90
Second support is the 20 day moving average crossing at 76.90

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