Crude Oil Closes Lower, Setting The Stage For Continued Lower Prices

Crude oil closed lower on Monday and below the 75% retracement level of this fall's rally crossing at 70.23 as it extended the decline off October's high. The mid range close sets the stage for a steady to lower opening on Tuesday.

If January extends the decline off October's high, the 87% retracement level of this fall's rally crossing at 68.16 is the next downside target. Closes above the 20 day moving average crossing at 75.68 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 73.39
Second resistance is the 20 day moving average crossing at 75.68

First support is today's low crossing at 68.59
Second support is the 87% retracement level of this fall's rally crossing at 68.16

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Natural gas closed higher on Monday as it extends this month's rally. The mid range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If January extends this month's rally, the 62% retracement level of this fall's decline crossing at 5.565 is the next upside target. Closes below the 20 day moving average crossing at 4.895 would temper the near term friendly outlook in the market.

First resistance is today's high crossing at 5.409
Second resistance is the 62% retracement level of this fall's decline crossing at 5.565

First support is the 10 day moving average crossing at 4.911
Second support is the 20 day moving average crossing at 4.895

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The U.S. Dollar closed lower due to profit taking on Monday as it consolidated some of last week's rally. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If March extends its current rally, November's high crossing at 77.27 is the next upside target. Closes below the 20 day moving average crossing at 75.75 would temper the near term friendly outlook in the Dollar.

First resistance is last Friday's high crossing at 77.12
Second resistance is November's high crossing at 77.27

First support is the 10 day moving average crossing at 76.04
Second support is the 20 day moving average crossing at 75.75

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